Taxes are a fact of life, but there are steps you can take to reduce your tax burden every year. If you own a business and need assistance with tax preparation, turn to Simplified Tax in Sparta, WI. The friendly team at this accounting firm has been helping individuals and small businesses file their federal tax forms for more than 30 years, and they will be happy to help you, too. Below, they have shared a few tax saving strategies for business owners.

Want to Save on Taxes? Here Are 3 Simple Strategies

1. Offer More Fringe Benefits to Employees

Although actual wages add to your employment and payroll taxes, certain fringe benefits do not. If you want to take care of your employees without increasing your overall tax burden, you could offer tax-exempt fringe benefits like educational assistance, transportation benefits, disability insurance, and meals.

2. Take Advantage of Accountable Plans

Accountable plans allow businesses to reimburse employees for entertainment, travel, tools, and other costs without applying these reimbursements as wages. This will decrease your total employment tax burden, especially if you are frequently reimbursing employees for various costs. 

3. Apply Deductions Strategically

Although you can deduct equipment costs in one lump sum, you may also be able to depreciate their costs over several fiscal years. In some cases, this will save you on taxes, but in other scenarios, it may not be the best strategy. An experienced accountant can assess your financial situation and advise you on the best way to proceed when it comes to deducting equipment.

Nobody wants to pay taxes, but it’s just part of the cost of doing business. If you own a small business and want to get the most out of your tax return this year, turn to Simplified Tax in Sparta, WI. Visit their website to learn more about the accounting services they provide and call (608) 269-2633 to make an appointment today.