If Only There Was An Easier Way!
How A Master Bookkeeper & My In-House CPA Help You Maximize Deductions & Minimize Tax Obligations
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Are your business taxes a mess?
Are you struggling to maximize tax deductions and shrink tax obligation?
Do you know how much you owe the IRS down to the penny — and not a dollar more?
As a business owner, you have a legal obligation to pay taxes to the government and state.
Yet…
Tax law encourages you to shrink your obligation and maximize your deductions.
Why would you pay more taxes than required?
Don’t.
It’s important to get your business tax planning and business tax filing spot-on accurate.
Thousands of business owners across the US pay more than their obligated amount due to bad bookkeeping and tax planning.
Self-imposed tax increases slowly sink businesses over time.
Will yours sink next?
It’s not enough to wait until “tax day” to see how you did for the year.
You may be missing out on deductions to save you money.
You may be paying more in taxes than legally obligated.
And you may force your business (aka you) to pay more in business taxes than necessary.
If you don’t have a Top Rated® Master Bookkeeper and In-House CPA to help you with bookkeeping and business tax planning, then you’re putting your business at a high risk for audit, penalty, and reduced cash flow (the “trifecta” that sinks businesses more often than
This is why an Expert Bookkeeper and In-House CPA are crucial to the financial success of your business.
As your Local Master Bookkeeper & Accountant, I deliver reports on time, weekly, monthly, quarterly, or annually.
Know where your business financials stand, right now. Let me save you a ton.
Call me today for your FREE financial analysis!
7 Business Tax Saving Strategies
Did you know the Internal Revenue Code is set up to provide you tax breaks?
If you know:
- Where to look.
- How to implement strategies.
- Plan ahead for tax season.
Then you can reap the benefits and pay less without the headache (or worry) of an audit or penalty.
The IRS gets that you need money to live on and operate your business…
…but you have to get proactive in minimizing obligation and maximize deductions.
Business tax planning and business tax filing are crucial to saving money on taxes.
Here are the 7 business tax savings strategies:
#1. Leverage The Qualified Business Income Deduction
In 2018, the Qualified Business Income (QBI) deduction went into effect as a part of the Tax Cuts and Jobs Act (TCJA).
This creates the opportunity to deduct up to 20% from your qualifying business income if your business is a pass-through entity like:
- A Sole Proprietorship
- S Corp
- Partnership
The QBI supports you passing income down to your shareholders, partners, and/or owners to report on their personal income.
What’s more…
The QBI deduction is on top of claiming your ordinary business expense deductions. Depending on your taxable income this deduction does have special requirements and restrictions.
Give your Master Bookkeeper and In-House CPA a call!
#2. Fund Your Qualified Retirement Plan
As a business owner, you can create tax breaks for yourself by funding qualified retirement plan for yourself and/or your employees.
The retirement plan must be recognized by the IRS to allow for deferment of taxes of earnings and until earnings are withdrawn. Some of these qualified plans include:
- IRA
- 401(k)
- 403(b)
There are a variety of options available to meet your plan, goals, and needs inside your business.
#3. Take Tax Credits
If you take tax credits to lower your business income, then you can find some tax savings over the year.
For example:
If you take a tax credit for the following, then you can reduce your tax obligation:
- Hiring employees
- Going green
- Providing access to disabled employees
- Provide health coverage for employees
- And more
Of course, many tax credits exist as a part of the General Business Credit category. Work with me, your Expert Bookkeeper, and my In-House CPA, to discover what works best for your business.
#4. Purchase Vehicles & Equipment
If you buy vehicles and/or equipment, then you can write these off as depreciation deductions.
Two common accelerated depreciation types come from Section 179 deductions and bonus depreciations.
Deductions
Once assets are “put into service, Section 179 allow you to deduct those asset costs. This offers you a way to reduce your obligation in a few purchases.
Per the 2018 TCJA, the deduction ceiling raised to $1 million.
Bonus Depreciation
Section 179 bonus depreciations give you another tax break benefit for buying assets.
Assets put “into service” between September 27, 2017 through January 1 2023 give 50-100% tax breaks.
If you’ve purchased (or plan on purchasing) any major assets, then talk with your Local Bookkeeper and In-House CPA to get your tax breaks planned and filed.
As your Local Master Bookkeeper & Expert Accountant, I deliver reports on time, weekly, monthly, quarterly, or annually.
Know where your business financials stand, right now. Let me save you a ton.
Call me today for your FREE financial analysis!
#5. Buy Gifts
You are allowed to deduct up to $25 per customer or vendor toward gifts.
If the person or name bears your business name, then you will be able to deduct less.
Keep in mind that you can deduct “entertainment…”
…but the event, situation, or occurrence must be directly related to your business in some way.
This is why it’s important to keep your financial records clear, concise, and organized so that you can reduce your tax obligation through deductions and other strategies.
#6. Prepay To Increase Expenses and Reduce Income
If you want to reduce tax obligation, then you can time your income and expenses throughout the year to do so…
For example, you can stock up on supplies early in the year to help increase expenses and decrease tax obligation. You can also time resupplies around tax obligations to reduce what you send to the IRS.
Another example, review your current expenses before the end of each year and prepay some of these amounts to reduce your income. Assets, supplies, and more can be leveraged in this way to decrease tax obligation.
#7. Write Off Bad Debts
If you’ve ever heard the phrase “I’ll write it off,” then you’ve got an idea on how writing off bad debts work.
You want to spend time at the end of the year and note which customers, vendors, etc won’t be paying you… and then use this as a “bad debt write off.”
What this does is let you deduct these amounts from your income and reduce tax obligation.
You can include loans to clients, employees, and vendors who don’t pay you back, too, as bad debt deductions.
Not sure if or how to implement these 7 tax deduction strategies in your business?
Well, you need to start with your bookkeeping to make sure you have spot-on accurate financials before you start leverage tax deductions.
Even one mistake could get you a penalty or the risk of going to jail.
As your Local Master Bookkeeper & Expert Accountant, I deliver reports on time, weekly, monthly, quarterly, or annually.
Know where your business financials stand, right now. Let me save you a ton.
Call me today for your FREE financial analysis!
Business Tax Shields
As a business owner, you can use what are called “tax shields” to reduce your income and decrease your tax obligations.
Through business tax planning and business tax filing, you can leverage tax shields to save you a ton.
Some quick examples of tax shields businesses can leverage:
- Medical Expenses
- Charitable Donations
- Mortgage Interest
- Equipment, Vehicle, or Asset Depreciation
With each type of tax shield above, there are requirements and regulations around how these shields can reduce your tax obligation. So, consult with your Master Bookkeeper and In-House CPA to learn more.
How Tax Shields Save Your Business Money
As you operate and grow your business, you can take tax deductions for purchases and activities. You can hope that what you purchase over the year gets you enough deduction to reduce your tax obligation to the lowest amount or you can plan these purchases and activities out to get the maximum deduction possible.
How you plan these purchases and activities out can help save you a ton in taxes over the year.
Business tax planning and business tax filing directly affect how you can leverage tax shields.
Tax Shield Benefits
Tax shields fit into your overall business financial strategy. These shields focus primarily on increasing expenses so that they increase deductions and minimize tax obligation. A third benefit is that if you plan and purchase strategically, you can help grow and expand your business without the potential for more taxes or even penalties for not operating properly in the eyes of the IRS.
Here are 2 Tax Shield benefits:
- Increase expenses to lower taxable income.
- Decrease cash on hand to put that cash into investments that provide a higher return.
At first glance, you may be thinking, “Tax shields reduce income.”
Yes, tax shields reduce income… however, they also offer you ways to use your “cash on hand” in other ways to get a greater return later.
Tax shields can be a great long term financial tactic to help your business grow.
As your Local Master Bookkeeper & Expert Accountant, I deliver reports on time, weekly, monthly, quarterly, or annually so that you can leverage tax shields fully.
Know where your business financials stand, right now. Let me save you a ton.
Call me today for your FREE financial analysis!
How Do You Calculate Tax Shield Value?
Tax shield value depends on 2 things:
- Effective tax rate of the business
- Amount of the deduction
Typically, the higher the income and tax rate, the bigger the tax shield value (and savings to your business).
For example, if you have a mortgage of $2,400 and your tax rate is 20%, then your tax shield value would be $480.
How to Leverage Tax Shields
Factor in tax shield value into every business financial purchase or activity. Simply ask yourself, how much tax shield value do I get out of this purchase or activity? The more you implement tax shields into your overall business financial strategy, the more you reduce your tax obligation legally.
The Difference Between Tax Credits & Tax Deductions — And How It Can Save You A Ton
If you believe that tax credits are good, then you’re on the right track to help save your business some money.
Business tax consulting and business tax filing can help you leverage tax credits and tax deductions for your business.
Tax credits and tax deductions are great for businesses so that they can increase expenses, decrease income, and reduce tax obligations.
It’s important to know the difference between tax credit and tax deduction so that you can reduce your legal obligation to pay taxes.
Here’s the difference between tax credit and tax deduction:
Tax Credit Superiority
Tax credits are superior to tax deductions.
Here’s why:
Tax credits deduct from gross, pre-tax income, which means your gross revenue is reduced and makes a larger impact when it comes to savings.
Tax deductions on the other hand deduct from net, taxable income, which means the IRS has “taken their cut” before you start your deductions.
What’s more…
If you make a business purchase and put the vehicle, equipment, and/or asset into service, then you can then get a tax credit for the year it was “put into service.”
As Your Master Bookkeeper & Expert Accountant, I Also Help You With Your Business Taxes
If your books are a mess, then you will have a tough time getting tax credit and deductions.
What’s worse, if you get audited for what you file, then your books can be the “nail in the coffin” or the “saving grace” you need.
Also, messy books hamstring any financial, CPA, or tax consultant from helping you maximize credits/deductions and reduce tax obligation.
It all starts with your business financials.
An Expert Bookkeeper and In-House CPA serve 2 purposes for your business when it comes to taxes:
- Reduce your chances of getting in trouble with the IRS.
- Increase your chances of business growth and expansion because you’re focusing on your business and not the bookkeeping or tax planning.
Do you know how these factors affect your business and its success?
Do you keep your own financial books for your business?
Behind on your books right now?
I’m your Local Master Bookkeeper & Expert Accountant, and I help bring months’ and years’ back financials current, the first time. Your business is safe in my forensic-bookkeeping and accounting hands, just check out what my clients are saying about me.
Call me, now, for your FREE financial analysis!
Core Local Master Accounting Capabilities
- 15+ years of Master Accountant experience
- Using a Forensic Approach and your in-place Accounting Software, I bring months and several years of unreconciled Accounts current-delivering Laser Focused Cash Flow, Balance Sheets, and P&L’s
- Job Costing
- Payroll-plugging in the right add-on to your current accounting system. Think, ADP, Gusto-all of the latest technology available
- Invoicing
- Accounts Payable/Accounts Receivable
- Full time or part time, in-house or remote
- Budgeting/Forecasting-showing you where you should go in the future
- The latest AI plug-ins right into your accounting software
