Having goals and strategies is good for everything in life, and that includes running your small business. Setting practical and productive goals along with healthy strategies and staying focused on them is a surefire tactic that can not only lead to business success but can also contribute, over time, to helping you decrease taxes your small business is required to pay. When you are able to grow your business, experience increased revenues by way of successful marketing and business goals and strategies, you may find yourself in a much healthier and happier place when tax time rolls around.
Implement Simple Goals and Strategies and Stay Focused
At Tax Alternatives our team of highly skilled and experienced professionals takes tremendous pride in helping our clients achieve their business goals. It goes without saying the more successful your business is, the more revenues you will receive. Certainly, focusing on specific business goals and strategies can contribute to paying less taxes when tax time comes around. Some of these simple ‘pay less taxes’ strategies include, but are not limited to:
- Taking tax credits that are available – When running a business there are some tax credits that, when utilized, can decrease taxes paid at tax time. There are a number of different tax credits that can come into play. From hiring employees, and providing employment for those who are disabled, to offering health insurance plans to employees and implementing initiatives that are environmentally friendly, the tax credits available are many. Our team of experts is on hand to help you determine which tax credits are available and which ones you should utilize.
- Setting up and funding a retirement plan for all your employees and yourself – A retirement plan can surely help you to save money on taxes paid. It is imperative that the plan is a qualified plan and recognized by the IRS to permit tax deferments on earnings until such time that the earnings are withdrawn from the retirement plan. Putting the right retirement plan in place offers benefits to both you and your employees and especially provides some tax benefits for you, the employer.
- Writing off bad debts – At the end of the year you should take a hard look at all your customer accounts. If you have accounts that you believe are simply not going to make payments, write off all those amounts that are owed as bad debts. If you have made any loans to employees, customers or even vendors that are not going to be paid off, you can write these off as bad debts as well. You can then deduct these amounts from your total business revenues and income which will help to decrease taxes owed and help you save on money.
- Timing your business expenses and income -Making payment of certain business expenses toward the end of the tax year rather than the beginning of the year, can most definitely help to decrease taxes somewhat. Review all your expenses before the end of the year and if necessary, prepay some of them to reduce your income for the year. You may also want to increase your expenses toward the end of the year which again, would reduce your revenues. Moving income from one year to the next can benefit you at tax time.
Staying Focused Helps to Save You Money
Here at Tax Alternatives, we take pride in providing our clients the highest quality services this side of the state. Those services can also include helpful insight on helping our business owners to save money all year long and at tax time as well. Owning a business certainly comes with a plethora of challenges and we want to help you be able to conquer some of those challenges.
Putting helpful goals and strategies in place and utilizing resources available to you can help to decrease taxes over time and add to the overall success of your small business. When it comes time to prepare and file your taxes, always trust the pros here at Tax Alternatives, some of the absolute best you will ever find in the industry!
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