There is no way to avoid paying taxes. However, there are ways to lower the amount you must pay to make your firm more profitable. All it takes is some preparation, planning, and the guidance of a qualified tax advisor.
The expert team of Blue Water Accounts can help you reduce your tax amount with our accountancy advice and guide you with a better accounting strategy and business payroll services.
So one of the first things you should do is consult with your accountant about all of the legal options for lowering your tax bill. Here are the following ways by which you can lower your tax bill and make more profits:
Claim Everything You Can As An Expense
This is the most effective strategy to lower your tax bill. But it also entails keeping all of your records organised and efficient. If you don’t have the proper documents, you won’t be able to claim a cost. Therefore, you should keep detailed records of everything. Keep an eye on every transaction your company performs to reach its goals. There is no need to hide anything from authorities rather present a detailed report with maximum claims.
Create A Filing System
The first step will be to create and maintain a detailed filing system. This is where your accountant comes in. It’s something you should do with them, or at the very least follow their advice in the completion of files and thorough reports.
Here are the followings to keep in mind:
- Always keep all receipts: You can use specialized software to keep track of your all receipts and important documents. Make sure you have all the paper receipts. It’s vital to write the purpose on their back.
- Provide your staff with an instruction guide, highlighting the points of what they can and what they can’t claim.
- Employ accounting software that uses bank feed to keep track of bank transactions and their snapshots.
Workspace At Home
Even if your business is located somewhere else, setting up an office in your home and using it for business purposes when you can is an excellent idea. As a small business owner, the chances are good that you’ll be working from home at some point, so you might as well take advantage of the ability to deduct a percentage of your home-based business expenses.
The following are the expenses which you may avoid:
- Maintenance costs, which may include electricity, insurance, cleaning supplies, etc.
- Mortgage interest
- Property taxes
You can seek advice from your accountant on hoe to meet all the conditions necessary to claim expenses.
File On Time
If you want to be one of those organised business owners, you must file your taxes on time. Doing so means you’ll avoid paying penalties or interest, and that will result in good savings.
What you’re trying to accomplish here is make changes to your business that will allow you to legally reduce your net profits and hence pay less tax.
When it comes to lowering your tax bill, it all counts as good habits, completing records, and foresight. Being as prepared as possible pays you since it puts you in a better position to take advantage of all the legal options to reduce your tax burden.
All of this should be done with your accountant’s help. They’ll help you get organised and keep your business on track so you’re only paying what you have to and getting the most out of any tax advantages available.
So, if you are looking for online accountancy services, Blue Water Accounts can help your taxes sorted in the most efficient way. You can also contact us for payroll accountants and bookkeeping services.