When you run a small business, how you file your taxes can make all the difference in your company’s success. Paying them correctly and wisely is not only important for remaining in compliance with the law, but also for maximizing your bottom line. No one wants to pay the IRS more than is necessary, and with a little planning and tax help, you will be better prepared to save. Here are a few tips that will help you keep as much of your hard-earned profits as possible.  

What a Business Owner Can Do to Minimize Their Tax Burden

1. Take Advantage of Deductions

There are different types of tax credits and deductions offered to small business owners every year. For example, if you work from your house, you can deduct home office expenses, and if you use your car for work-related activities, you can deduct the mileage. Insurance costs, charitable contributions, and business equipment that’s classified as section 179 property can also be deductible. 

2. Keep Organized Receipts 

Maximizing your tax savings requires knowing how your business’s money was spent throughout the year. Keeping organized receipts will make it easier to understand your company’s cash flow and log deductions correctly on your tax returns. Also, in the event that you’re audited, it’s imperative that you can provide proof of your expenses and income to validate the costs that were reported.  

3. Get Professional Tax Help 

Work with a financial expert to ensure you understand all the tax breaks your business qualifies for to increase savings. They will help you navigate confusing tax laws and explore potential investment opportunities. Additionally, an accountant will make sure you file your taxes accurately and on time to avoid incurring late fees. 

One of the most common reasons small businesses shut down is because they fail to curtail their expenses and maintain a steady cash flow. The certified public accountants at the office of Roy E. Carter, CPA, PC understand that getting tax breaks is key for a company’s continued growth and development. For more than two decades, they have provided entrepreneurs throughout Augusta County, VA, with reliable tax help. With their guidance, you can be confident that you’ll save the maximum amount on your tax returns. Call (540) 886-6251 to schedule an appointment, or visit them online to learn more about their tax help services.