As the end of the year rapidly approaches, it is good to take a look at your businesses and make sure you are taking advantage of all the deductions you can. There is noting worse than preparing your Income Taxes and finding that there were many deductions you didn’t keep track of. Keep in mind that for every dollar you don’t deduct, you could be paying up to 35% back to the government. If the dollar has been spent on a tax deductible expense, then taxes shouldn’t have to be paid on it.
Most business owners remember to take the big, obvious deductions such as cost of goods sold, materials, tools, supplies, and employee expenses. But often times it is the small, seemingly insignificant deductions that can make or break a company. Items such as paper clips, bank charges, credit card charges, and home office expense seem small and unimportant at the time, but multiply those little things over a year or two and then multiply it times 35% and it can add up to quite a bit of money that should be in our pocket rather than in the government’s.
It is vital for the success of every business to know what expenses to keep track of, carefully record those expenses and then evaluate those expenses on a regular basis. Many companies wait until tax time to add up receipts and then wonder where all the money went. Evaluating income and expenses on at least a quarterly basis gives you the big picture. It allows you to determine how to better increase sales and decrease costs.
For a comprehensive list of available deductions you could be taking each year for your business, please visit www.soulence.com/categories.