https://www.businessloanconnection.org/Spending money is an essential part of running a small business. As a small business owner in Central, NY, you often need to determine what you purchase, what supplies you reorder, and what expenses need to wait. Sometimes spending money now can help you save money later because you will be able to lower the business taxes you will owe at the end of the year. Here are some crucial tax deductions for your small business.
Many of the technological devices and equipment you purchase to help run your business qualify as tax deductions. Qualifying purchases include:
- Mobile phones
- Internet provider
- Technical support
- Training to use technology
- Refrigerator for breakroom
- Lights and lighting
Some technology deductions can be taken all at once, while others need to be spread out over several years. Your accountant, book keeper or tax advisor in the Finger Lakes region will be able to help you understand how to qualify for specific technology deductions based on your purchases for the year.
Essential business supplies are also tax deductible, including:
- File cabinets
- Cubicle walls
- File cabinets
- File folders
Keep careful track of all of the supplies you purchase throughout the year to decrease your tax liability.
All of the inventory you need to create the products you sell, the items you ship or things you sell in your brick and mortar store constitute an important tax deduction category:
- Spices and ingredients you use to create the dishes you sell in your restaurant
- The materials you need to produce the dolls you sell
- The wellness products you buy to sell in your health food store
- The beauty supplies you sell on your ecommerce website
All of these items are tax deductible, so monitor your inventory carefully.
The expenses you incur while advertising your business are also tax deductible such as:
- Your company website
- Sales activities
- Television/Radio ads
- Newspaper ads
So consider this as you determine what types of marketing you will do for your company.
Employee Related Expenses
Expenses related to hiring, training and retaining employees are huge and are also one of the major categories in deductions.
Deductible employee expenses include:
- Fees paid to contractors
- Health insurance and benefits
- Company Parties
You may also be able to deduct the fees of the accountant you use to determine deductible business expenses.
All travel related expenses also qualify, including:
- Client meetings
- Trade shows
- Meetings with vendors
- Plane tickets
- Hotel bills
Keep careful track of all of your expenses when you travel so that you can deduct them to reduce your tax liability.
Costs that you accrue to startup your business can be tax deductible, such as:
- Registration fees
- Office space
- Securing distributers
- Grand opening activities
Determining your tax liability is an important but confusing part of running a business. Hiring an accountant or tax advisor who understands current business tax codes will help you to reduce your tax liability while staying compliant with business tax laws.