From the second you start a new business, it’s important to know what tax breaks you’re eligible for. This can lead to huge savings, better financial planning and more accurate projections. While every business is different, there are a number of tax breaks that are universal across the board, regardless of your field or size.
Tax Filing Fees
The first thing you should write off your taxes is the fees for filing the paperwork itself. Whether your accountant, lawyer or general bookkeeper is filing your tax returns, the expenses required are usually deductible.
Building your brand takes money, and almost any effort you make to promote your business will be tax deductible. From printing new business cards to plastering a metro station with posters, you should always file your promotional efforts under expenses, no matter how big or small they may be.
The Revenue Service will give you a tax breaks when it comes to theft; however, they won’t give you tax breaks for wasted labor. For example, if somebody walks into your shop and steals a something, you can write off the price of the physical goods, but not your working hours.
Loan interest can be hugely damaging, which is why this particular tax break is probably the most valuable. If you’ve acquired credit or loans to get your business off the ground, but are still struggling to pay them back, make sure you keep all of your records. If the cash from the credit or loan was used for business purposes, the interest will be deductible. If you’re planning on applying for credit or loans, make sure you keep it in a separate bank account, as when you start building interest, the accounting gets complicated very quickly.
Networking is one of the most important aspects of conducting “good business.” In order to make friends in your industry, you’ll often have to send them gifts, attend trade shows, take CEO’s out for dinners, join associations, etc. If you can prove these expenses have been purely for networking purposes, they are tax deductible.
Educating both yourself and your employee’s costs money. If you need to attend a course or send your staff on a training day, then you can deduct the costs, providing it’s specifically related to business development and not recreational.
If you decide to donate goods to charitable organizations, make sure you get a receipt for their costs. You are legally allowed to deduct the market value of these items; however, you must have written confirmation to prove it.
Try to keep up-to-date with your accounts and assess your business finances on a regular basis. Leaving your tax return to the last minute can be hugely damaging and could result in a bill that’s much larger than you originally anticipated. Hiring a professional or taking a little time out of your schedule each week will pay off in the long run, even if it seems like an inconvenience at the time.