Tax Tips You Can Use For Your Small Business
Accounting is a big part of owning a small business and it's critical to have everything in order when it comes to tax time. The best thing that you can do as a small business owner is to sit down with a professional accountant to go over all your expenses and go over what you can claim as a tax write-off. Here are some tax tips that you can employ at tax time to help maximize your tax returns.
Claim Your Mortgage Or Rent
When you operate your business out of your home then you are entitled to claiming a portion of your mortgage or rent as a business expense. An account will sit down with you to decipher the size of the work area that you use inside the house. The size of the work space will be used to determine how much of the space can be used as a write-off. The space is a business expense in the same way that any other company would be able to claim a portion of the rent they spend to rent an office space.
Claim Your Vehicle
When you use your vehicle for business purposes you need to keep a log of the mileage that you use for personal verses for business. Write down the mileage each and every time you drive and the save your receipts from every time you fill up the gas tank. Small businesses are entitled to claim these expenses on their taxes and can get a partial refund or credit towards to the total amount owed. Other vehicles related expenses such as repairs on the car can also be claimed as you need to keep the vehicle in working order to run errands for the business or make deliveries.
Claim Travel Expenses
If you are forced to travel for work and require an out of town stay then you can claim them at tax time. Expenses such as a stay in a hotel and a small budget for food can be put through if you have the proper documents and receipts to prove that they are business related expenses.
Following these tips outlined above will help you get prepared for the filing your taxes at the end of the year. Working with a professional accountant (such as one from J H Williams And Co LLP) will help you go through all your invoices and receipt to figure out what things you can or cannot claim for tax purposes.