You can cut your next tax bill if you are focused on certain key elements.
Was your last tax bill exorbitant? Now is the time to cut your next tax bill. Small business owners have had quite a rough financial year. Many will not return to the world of entrepreneurs next year because of the great losses they have undergone. Imagine how it would be if you were able to cut your next bill.
Here is some very valuable information that will help both you and your business to grow. Below are 4 usable tips which should enable you to cut your next tax bill.
1. Purchase business goods
The fact that you are in business for yourself means that you are responsible for acquiring your own business supplies. The items which you use in your company daily are items that can be written off on your taxes. It makes sense to get money back on your next tax returns while buying things that you need for your enterprise.
2. Use your automobile wisely to slash taxes
As a business owner you use your car to travel to meetings, company events, training session, and a number of other places. Keep a careful record of all mileage that you have accumulated each year. When it is time to do your taxes, simply give your accountant your mileage book and he will do the rest.
3. Employ your family
Another vital method to save money on your next tax bill is to hire your wife or children. Hiring family to cut the lawn outside your company or clean the office can result in having more money in your own bank account at the end of the year. Since they may be in a different tax bracket, this will help the entire family to reap the rewards that come when you slash taxes.
4. Pay yourself less
Many small business entrepreneurs love the idea of paying themselves. This is in sharp contrast to having to work for an actual company as their employee. You now work for yourself and pay your own salary. However, it is wise to pay yourself a smaller salary, because a smaller salary means paying a lower tax rate. The lower tax rate you pay could translate into more money in own pocket come tax time.
If you implement these 4 tips, you may be able to lower your next tax bill by a large margin next year.