Small Business Tax Tips for 2017
Take as many deductions as you’re legally allowed to take
There’s no sense in paying any more taxes than you’re legally obligated to pay.
As a small-business owner, there are a number of tax deductions available to you. For example, if you work out of a home office, you may be able to write off some of your mortgage interest, insurance, and utilities expenses. If you drive a personal vehicle for work purposes, you may also be able to write off some of your mileage, as well as other car expenses. Do you ever take your clients out for lunch and pick up the tab? You can write those meals off, too.
Use accounting software to keep track of your expenses and revenues
If you’re still relying on keeping track of your small business’s expenses and revenues by hand, it’s time to get with the times. When you use accounting software like QuickBooks or FreshBooks all year long, it becomes incredibly easy to generate the financial statements you need to pay your taxes properly.
In addition to making tax season more bearable, accounting software also promises to save you a ton of time. So instead of crunching numbers all day, you can instead focus on doing whatever you can do to grow your business and provide better service to your customers.
Start thinking about next year’s taxes today
As you complete the process for filing your small business’s 2016 taxes, you may be tempted to try to forget about having to pay Uncle Sam next year. Unfortunately, Uncle Sam will come calling sooner or later.
Start thinking about how you’re going to pay your 2017 taxes right now. The sooner you begin thinking about the following year’s tax obligations, the likelier you’ll be to reduce your burden and find ways to make smart investments that reduce your total obligations.
It may not sound like the most fun thing in the world, but when you’ve budgeted for taxes all year long, tax season becomes much easier to navigate.