5 Tricks for Filing Taxes This Year
Individuals filling for personal taxes may need some help. If you have to file business taxes, then you definitely need some extra assistance. There are a lot more forms companies need to file, so to make next tax season a lot simpler, here are some tips for making the process easier on yourself.
1. Keep Good Records
In order to get the most out of your business deductions, you need to maintain good records of all business-related expenses. This is something you need to do throughout the year, and you need to file everything away appropriately. This will allow you to locate records with ease and not scramble the find important deductions. Some deductions include health insurance expenses, charitable donations and travel costs.
2. Record Equipment Purchases
If your business relies on expensive pieces of equipment, you can usually write those expenses off on tax forms. Even if you bought something a year or two ago, you might still be able to write it off. You need to take into consideration the depreciation costs, but it is still a deduction to utilize.
3. Isolate Personal and Business Expenses
You do not want to use the same credit card for business expenses that you use for your own personal needs. Have one credit card for yourself and another that is specifically meant for the company. When it comes time to file your business taxes, you will have records throughout the year showing what business expenses you made on the card you can write off.
4. Review Inventory Balances
At the end of the year, check your inventory records. This will show you what items you have a surplus of that have not been selling. In some circumstances, you can sell excess inventory for scrap. By selling, you reduce revenue, which will help reduce your final tax bill.
5. Review Records for Tax Credits
Special tax credits exist for businesses that meet certain criteria. For example, if you invested in energy efficient technologies that are good for the planet in the last year, then you could receive a tax credit for that. Additional credits exist for research and development, work opportunity and healthcare.
Being savvy about your business taxes will allow you to save money, which can then be spent on other aspects of your company. If you are unsure how to fill out something or whether you qualify for benefits, then you can talk to an accountant for additional information.