Money Saving Tax Strategies for Small Businesses

October 22, 2024
Published by Gonzales Group CPA

For many small business owners, taxes and other business bureaucracy can be a stressful learning process. This is where a professional San Antonio TX CPA can be of significant help, not only in understanding what is necessary, but also helping you find money-saving opportunities in the process. To help you understand just how a professional can help, these are just some of the tax strategies that may apply to your business

Claiming eligible tax deductions is a great way to save on taxes, but understanding what can be included and how to claim it can be confusing. Small businesses can deduct expenses, such as office supplies, business travel, software, and utilities. Even if you work from home, there are potential deductions for your home office, and possibly even utilities and mortgage or rent. But there are requirements you need to meet for these deductions and it’s important to know the fine print.

Deferring income to the following tax year is a highly beneficial strategy, especially if you expect to be in the same or lower tax bracket next year. By postponing income recognition, you can lower your taxable income for the current year, which may help reduce your tax liability. This shift may allow you to qualify for deductions you wouldn’t be able to claim if you were in a higher tax bracket.

Employee benefits can help you attract quality employees, but those benefits can put a strain on your business. Contributions to retirement plans like IRAs or 401(k)s provide significant tax benefits, as these contributions are tax-deductible, reducing your taxable income for the year. Similarly, employee health care and paid leave may also qualify for a tax credit.

It’s not just benefits for employees. If you’re self-employed and pay for your health insurance, you can deduct your health insurance premiums for yourself, your spouse, and dependents. This deduction directly reduces your adjusted gross income.

Depending on your situation, you may also qualify for green energy tax credits. While it may be harder for small businesses to qualify for some of the bigger credits, you may be able to benefit by installing energy-efficient lighting in your office or using green materials to upgrade. It’s always worth looking into the possibility, plus, energy-efficient lighting and more should at least save you money on your utilities.

As you’re trying to grow your business, it can be hard to make the most of the variety of tax breaks and credits available. Plus, there are certain IRS guidelines and requirements that it’s important to know. This is why working with a San Antonio TX CPA like the experts at Gonzales Group is worth it. We can help you make the most of the specific tax breaks available and ultimately boost your bottom line, so contact us today to help you start saving money.

Categorised in: Business Tips, Common Payroll Mistakes, Money Saving Tax Strategies for Small Businesses, San Antonio Tx Tips, Tax Info, Why Small Businesses Need a CPA

This post was written by Gonzales Group CPA