If you are a small business owner, you are probably familiar with the fact that managing cash flow can be quite challenging. In other words, having more cash on hand is a struggle, and that’s the reason why every dollar saved is more than welcome.
Luckily, Syndeo Group – a group of companies providing professional services in accounting and taxation, superannuation and management consulting – is here to help and share the best tips on ways how to lower your tax bill and how to get more out of your tax refund.
So, let’s see how your small business can benefit from tax deductions:
Top Small Business Tax Deductions
- Home Office
If you run your business from home, there’s a great chance to deduct expenses related to office space. Namely, according to the IRS, you can deduct $5 for every square foot. However, your office space must be used for business only and not serve as a guest room, storage space, or anything else.
The truth is, paying rent is somehow like throwing money out the window. But, there’s a positive aspect of renting a business location (whether it is an office space, a desk, or an entire building) – renting expenses are completely deductible.
- Office Supplies
Closely connected to the first point, office supply expenses, even if you purchase them in small amounts, can be deducted. Some examples include pens and pencils, envelopes, paper, stamps, and even printers, computers, and smartphones.
For a business to be successful, advertising/marketing is crucial, like direct emails, business cards, social media, a business website, etc. So, if you are marketing your business, you’ll be happy to know that you can also claim this expense in your tax deduction.
- Vehicle Use
Your financial situation may be easily improved if you’re constantly using your personal vehicle for business purposes. You can claim this deduction in two ways: IRS standard mileage rate and keeping records of expenses related to your vehicle.
Your office may be at home, but if your business requires frequent trips you can also claim a deduction on your travel expenses including bus or airline tickets, rentals, hotels, foods, etc. But remember, these trips must be for business purposes only.
- Debt Interest
In general, all small business owners take out a business loan. However, the interest that accumulates makes maintaining a debt pretty difficult. Luckily, you can keep track of the interest you pay for your loan, mortgage, or business credit, and include it in your tax deductions.
- Professional Fees
Here’s yet another reason to invest some money into hiring an accountant. Namely, legal or accounting fees connected to your business are eligible for deductions. Therefore, don’t hesitate – contact Syndeo Group today to ensure you get the best advice on how to benefit from tax deductions.