Business taxes are more complex than individual income taxes. There is no single tax rate for small businesses. Instead, tax is separated into different regimes, and which one your business slots into will depend on the type of business you run, as well as how much it brings in.
Saving Money on Your Tax Bill
There are several tax deductions available to small business which provide many opportunities to save big come tax time.
Tax write-offs available for small business expenses include business equipment, business travel, furniture, office supplies, travel, and accommodation. It is also possible to deduct the premiums you pay for health insurance if you are self-employed and can’t access health insurance through a spouse.
Tax credits are also available, which can help reduce your tax liability. If your business qualifies, you can access tax credits when you provide your employees with healthcare.
Other tax credits are created by the government to provide an incentive for you to run your business in a certain way, such as creating a more sustainable business or providing childcare services for employees.
Calculating the Taxes for Your Business
By far, the most efficient way to prepare your tax return is always to keep accurate records. An accurate record of your comings and goings will help tax season go a lot more smoothly.
Tax software exists that can help you maintain your records. Update them regularly, so there’s no chance of overlooking anything, and you are not rushed with a looming tax deadline.
A better way to look at it may be to consider your good record keeping as an investment, which provides the best return on your taxes.
Tax accountants are another great asset you can employ to get you the best possible tax return for your small business. Their experience and knowledge are invaluable in rooting out every possible tax credit and tax deduction. Your tax accountant’s affordable fees will be returned to you many times over when you take advantage of their professional services.