5 Tax Saving Tips for Small Businesses in 2017
As 2016 ends and 2017 approaches fast, the upcoming tax season is now just around the corner. Since the tax season is beginning to ramp up, many small business owners are asking the question, “how do I reduce my tax expense?”
This is a commonly asked question in the accounting field. So, with that in mind, here are 6 tips to help small business owners earn a little more income this year.
Boost your Small Business Income with These Tax Savers
- Take advantage of depreciation deductions before a potential legislative phase out.
2017 will allow small business owners to deduct purchased capital assets to be reduced by up to 50%. Each year following deductions will decrease by a standard 10% until 2020 when legislative help will be needed to extend the tax break.
- Hire a pro.
If you are currently handling your own taxes, then you may be missing tax saving opportunities. Taxes preparation for small businesses can be a very challenging and working with a professional small business accountant will help ensure your company minimizes its tax burden.
- Be prepared.
Tax laws change regularly. It’s best to stay current on laws and deadlines. Reading business journals and working with a tax professional will help prepare you for changes with tax laws.- Don’t bank on proposed laws either.
Staying consistent in your tax preparation will ultimately be the safest bet.- Don’t wait to organize your financials during “tax season.”
A smart business owner keeps an accurate, regularly updated log of expenses, sales, and inventory.
- Save money by spending money!
Consider spending money before year end on assets or expenses that are ordinary and necessary for your business.
- Know your tax deadlines.
Changes to the upcoming tax season will impact certain business classes.
- C-Corp – Deadline pushed back to April 15th
- Partnerships – Deadline moved up to March 15th
- S-Corp – Deadline moved up to March 15th
Helping your small business to become a big success takes hard work and determination. But, without the right plan in place, many small businesses fail in the first few years. Take advantage of these tax saving tips, and you will help your businesses chances of making it for many years to come.
Work with a Certified Professional Accountant in Raleigh
Knowing the in’s and out’s of the tax code requires a working knowledge that only a Raleigh CPA can provide. At C.E. Thorn, CPA, PLLC, our team has helped area businesses for nearly 30 years. We believe in helping our clients maximize their income by following best practices and finding cost saving opportunities.
Contact us by calling 919-420-0092 or completing the online contact form. We welcome the opportunity to help your Raleigh small business reach its goals.