Small Business Tax Saving Tips
There isn’t a person I know who wouldn’t jump at the opportunity if he was told he can save additional money by reducing his taxes.
Tax saving is a real possibility.
This article gives small business owners 3 valuable tax saving tips that will help you save money, and prevent you from going crazy when tax filing season arrives.
Tax Saving Tip Nr. 1: Expenses
Start by separating your personal expenses from your business expenses. It would be a nightmare if you try to co-mingle your personal and business income and expenditure. The best way to do this is to separate business from personal transactions by using separate checking accounts and/or credit cards.
Tax Saving Tip Nr.2 – Receipts
Make a habit of keeping all your receipts, especially if you are a new business owner you may not be sure what expenses are tax deductible and what are not. File all your receipts in a safe place, and when tax filing season comes, simply hand over your receipts to your tax practitioner.
If you don’t want to end up filing hundreds of receipts, you could consult a tax practitioner to advise on which expenses are tax deductible and only file those receipts.
Tax Saving Tip Nr.3 – Find a system for quick bookkeeping
No successful company like KFC or Woolworths became successful without a good system. You can have the best product in the world but without an effective system, the success won’t be sustainable. If you want to keep your sanity and stand the best chance of running a successful business you need to find a way that works for you with regards to organising and filing your paperwork.
Schedule a time each month where you key invoices into your bookkeeping software or your own Excel document.
If you apply these basic tips to generate tax savings for your small business, you’ll reap the awards of staying sane as well as saving money.
If you don’t have a tax practitioner yet, contact Tax Relax today.