As a small business owner, saving every dollar you can on taxes makes a big difference to your bottom line. To do this, you need to develop excellent small business accounting practices and a solid tax strategy. Here’s what you can do to ensure you get the biggest return possible and have a smooth filing process.

How Small Business Owners Can Save on Taxes

1. Deduct Business Expenses

Section 179 allows you to take a full deduction for business-related purchases in the year they were bought. This year, small businesses can deduct up to $1,040,000 in company expenses. You can deduct computer software, company vehicles, and new office equipment, like printers and shredders. If you opt for this deduction, your accountant will need to file form 4562 with your income tax return.

2. Factor in Your Home Office

Many small business owners have a home office, as storefronts can be expensive. Your home office can be deducted if it’s used regularly and exclusively for work, as well as if it’s your principal place of business. The deduction will be based on your expenses and office size compared to the home’s overall square footage. Alternatively, you can calculate the deduction based on a rate per square foot of office space.

3. Keep Better Records

While it takes a bit of diligence and organization, keeping track of your invoices will help you file your taxes quickly and smoothly. This ensures you receive your return as soon as possible, allowing you to put the funds toward your business’s future, like investing in a marketing campaign. At the beginning of each year, dedicate a space for your receipts and use tabbed folders to keep them organized. On the other hand, it’s OK if organization isn’t your forte, as a small business accounting professional can keep them neat for you.

If you need small business accounting assistance, contact Wilfred E. Bucher, CPA, in Honolulu, HI. Bucher and his team have experience helping small business owners maximize their deductions and plan for tax season. Visit their website to get more information about how they can assist your business, or call (808) 528-4146 to schedule an appointment.