As the Year End Draws Closer, These Are Some Items to Consider When Preparing Your Business Tax Return
If you were to ask your employees about business cash flow, they would either have no idea what you were talking about or would believe that there is an abundance of free cash flowing through the business.
The reason why they would assume this is simply because the lights turn on and the phones work. Little do they know that these services all incur monthly costs and could be causing cash flow problems.
As the end of the year approaches, it’s a good idea to think about your business tax return and consider some of your monthly businesses expenses which you can claim to help boost your cash flow.
It doesn’t matter if it’s a suite, the entire floor of an office, or even just a promotional stand for a weekend, if you are using and paying for a space for the purpose of operating your business, then this is definitely an expense you should consider using as a deduction against your business tax.
Any business owner knows that rent is the most expensive overhead, and knowing that it can be deducted at the end of the year can be a great help when managing yearly finances.
Office Supplies and Furnishings
Whether it’s pens and paper from your office supplies or furnishings for your waiting room from the Groupon Coupons page for Sears, if it was used for your business, then keep the receipt and consider claiming it against your business tax bill.
If you lease any of your office supplies, be sure to use the correct calculations to ensure you are claiming only the allowable amount each year including any appreciation.
Speaking of Lights
If you flick a switch and something turns on or you turn a faucet and something comes out, then you can consider claiming these items against your business tax. This includes utilities such as electricity, gas, water, internet, and telecommunications, and any other service you rely on to operate your business.
If you work from home, you can still look to claiming some of these costs, however, they will need to be apportioned between personal and business use. For example, if you use half of your internet quota for work and the other half for personal use, then you would claim only half.
On the subject of services, it’s important to remember that your various insurance premiums are also items you can consider claiming. This includes insurance for your property, equipment, any cars your business owns and operates, right through to any insurance you provide for your employees.
Take a look through your business line items for anything insurance related and consider using these to reduce your tax bill.
When it comes to claiming items against your business tax return, it’s always a good idea to speak with a professional to ensure that you are claiming only allowable deductions, however, the items in this article are great places to start looking when it comes to claimable expenses.