If you own a small business then you know how difficult it can be to do taxes at the end of each year. Here are a number of tips that you can employ to help yourself out when it comes time to do taxes and maximize your returns.
Keep All Receipts Sorted By Month And Type Of Expense
When it comes time to file your taxes you will need a way of keep track of all the money you spent throughout the year. Keeping all your receipts in a shoebox will keep them all located in the safe place that you can access at any time. Separate the receipts according to month and what type of expense they are to allow you to reference them without having to sort through a massive pile.
You Can Write-Off A Portion Of Rent Or Mortgage For Small Business
Small businesses that operate out of a house are entitled to write-off of a portion of the rent or mortgage payment. The amount that you can claim will depend on how much space your business occupies within the house and how much of the house is used for business purposes. When you operate out of the house you can also write-off the same expenses that you would incurr if you rented an office space, such as electricity, water and other expenses necessary to operate the space. Consult with a professional accountant, such as Nathan Professional Corp Bookkeeping, to go over exactly how much you are entitled to and what expenses are related to the business that you can claim as an expense.
Your Car Can Be Claimed If Used For Business Purposes
If you need an automobile for the business to get back and forth to meetings or make deliveries, then you can claim it as a business expenses. The expenses related to the operation of the car such as gas, oil changes, and auto repairs can also be claimed as an expense at the end of the year when doing taxes. Make sure you keep track of your mileage that is used for business and separate it from the miles you put on the vehicle for personal use. Also make sure that you keep a tally and the receipts for gas and auto repairs, so that you can show the expenses in the event that you ever get audited.
If you have a small business you should hire a professional accountant to sit down to go over all the expenses and your income. They can advise you of all the things that you can claim and let you know the proper amount that you should write-off. A professional accountant can also help you if you get audited by the government and can help you go over your accounting to find any potential issues.