Ways to Save Money on Business Taxes

Saving money on taxes is a big deal for a small business owner. Not only does it mean more money with which to run your business, but it also means more money to pay your salary as the owner of the company.

Here are a few suggestions for how to save money on taxes.

Business expenses. Do like Santa does: Make your list, and check it twice. More, if necessary. Be sure you included every possible expense. If you leave off business expenses, your net income may look higher than it actually is, making you pay more in taxes than you should.

Business property. If you have business property such as real estate that has been depreciated over a period of several years (see IRS Form 4562, Depreciation and Amortization), you can only claim a portion of the expense as a deduction on each year's taxes. You can make sure this is done correctly by utilizing cost segregation, also known as cost segmentation, an analysis process that recategorizes your property to maximize your deductions. A net present value calculator will tell you whether you can benefit from a cost seg analysis.

Business gifts. You can also deduct business gifts to reduce your net business income. For more information on this, watch the free video below.

Save Money

When my grandfather wanted to buy a screw machine to replace one that was old and kept breaking down, I suggested he look at a few used screw machines. He, of course, thought I was crazy, suggesting he replace an old machine with another old one. But then I explained to him that used doesn't necessarily mean old and broken down, especially if you do some research and purchase the machine from a reputable dealer. He was still undecided until I pointed out that he would not only be helping to safe the environment, but also some money by buying it used. His factory was already filled with automatic lathes and multi spindle machines that would all need to be replaced someday. Why not start off with a used screw machine and see how it goes?

He finally promised to consider it after I said I'd do all the research and get back to him. Once I looked into it and realized how much he could save by buying a refurbished machine, I knew he'd go for it. Especially since the company I found was one of the best and fastest rising in the country.

I presented my case and had him swayed in no time. He ordered the used machine and is so glad that he did.

I Thought My Website Might Need to be Altered, and I Was Right!

A few months ago I initiated an internet business that I have wanted to start for years. It was carefully planned and professionally executed, yet my profits are not reflecting my hard work. I was starting to realize that everything doesn’t go exactly like you plan in business.

I have tried adjusting my prices and even offered incentives for purchases yet it makes no, small, or short-term differences in my overall sales. After making some adjustments and seeing very little change I began to wonder if it wasn’t how my website was set up. Therefore, I wanted to perform some customer satisfaction surveys and find out from the consumers exactly what the root cause was. I also had a customer service survey conducted after every transaction to get more immediate feedback.

As I suspected a customer survey clearly indicated that the arrangement of my site was not being reported as being user friendly. It didn’t take me long to make some revisions and I am already seeing a difference in the response from my customers as well as my sales. Now I expect see more of a payoff from all of the hard work I have put into this endeavor.