As a small business owner, it is vital that you are able to secure every deduction possible when filing your taxes each year. While this is something that companies of all sizes look to do, it is even more important for smaller businesses, where a few dollars here and there can have a far-reaching impact on a company’s overall fiscal health. Here are a few tax assistance tips in Des Moines, IA that will help every small business owner maximize their returns this year:
- Keep tabs on your receipts: Receipts are documented proof of the products and services that your business has paid for and can be used to ensure that you receive the maximum amount in deductions. You may be eligible for deductions you didn’t know existed, depending on the size of your business and the amount of revenue you generate throughout the year, and these receipts will help paint a complete and accurate picture for your tax advisor. In addition, reviewing your receipts every year during tax time will give you a good idea of where and how your company is spending its money, allowing for adjustments to be made to the budget if necessary.
- Utilize your retirement account: Setting aside extra money for your retirement account is a move that will pay off both now and in the future. The money that you place into a traditional retirement account or Roth IRA won’t be taxed until the funds are withdrawn after retirement. That means that your taxable income for the year will be lowered, and your future will be more secure with all of the additional money you set aside.
- Using a home office: If you work from home or drive your own car to handle work-related duties, these may qualify as business expenses. After you and your tax advisor determine how much time in your home is dedicated to helping you run your business, a portion of your payments for insurance, mortgage and utilities might be included in your expenses for the year. Additionally, if you purchase a new computer or office chair to be used while you are working, these items are considered business equipment, and can be deducted from your taxes the year they were purchased as well.
- Hiring family: Hiring a family member who performs tasks that are essential to the operation of your business allows you to file an additional deduction for the compensation they receive. Not only will you be able to provide employment for a family member, but you will also benefit by lowering your taxable income.
Completing taxes can be confusing, especially for small business owners who need to ensure that they are taking advantage of all possible deductions. For tax assistance in Des Moines, IA that you can rely on, contact the team at Accounting & Tax Professionals, PLC. As a locally owned and operated business ourselves, we understand that small business taxes require a different approach, and we will use our 20-plus years of experience to help you secure every penny. To get started, make sure you give us a call today.