As a small business owner, there are many things you need to keep a track of.
You may find that you have more responsibilities, but there are definitely many added benefits to being a business owner and claiming deductions is one of them.
There are tax rules and laws that you may have never been aware of, and although it may seem foreign or new to you, with some research and the help of an accountant you can learn about the deductions you qualify for and how to make those deductions work for you.
The following are a few deductions you can qualify for as a small business owner.
One of the most beneficial deductions is a home office.
If you are using a spare room in your home to run your business, then a portion of the rent or mortgage is considered a deduction.
Also, having an office opens you up to other deductions including, office furniture, computers, office equipment, software, and even office supplies.
Chances are likely that if it is an item that helps you operate your office then you can claim it as a deduction.
Again, this is within reason, so you may want to include that new Jacuzzi you installed, but if it has nothing to do with your business, don't include it in your deductions.
Other items you should deduct are travel and entertainment expenses, if applicable, charitable donations, advertising, education and gasoline.
Since education is a valid deduction, you should take a class and take advantage of the opportunity to learn something that could potentially benefit the operating of your business and increase what you receive during tax time.
And entertainment and travel should definitely be included, but again be sure to document everything and keep your receipts so that you can justify what you've spent, if needed.
The more accurate you are in keeping track of your expenses, the easier it will be to prepare your taxes and to account for the proper deductions.
By becoming aware of all the deductions you can claim, you are maximizing your chances to have a healthy income tax return, which you can in turn reinvest back into your company.
Hire a good accountant and learn as much as you can.
You and your business can stand to benefit the most from this, so it only makes sense to be informed.
Although deductions are important, you also have to be careful not to be overly extravagant with the deductions you make.
If for any reason it seems outrageously high or out of the ordinary, you may find yourself having to take the matter up with IRS.
So be sure to include your deductions, but don't go overboard.