It’s tax season! For many, it’s the most dreaded season of the year, but with the right financial systems and tools, doing your taxes doesn’t have to be so taxing. This month, we’re diving into the financial side of your business. So far we’ve talked about budgets and important financial tools.
But now, let’s talk tax deductions! As a business owner, there are various tax deductions you should know about that can reduce the overall amount of tax you pay. Every penny counts, especially when you’re just starting out, so it’s good to know what deductions you’re eligible for.
Here are 5 tax deductions you need to know about:
1. Advertising and promotion
Did you know that the cost of advertising and promotion for your business is fully deductible? This includes the cost of your website and social media marketing campaigns. As small business owners, we often end up spending a small fortune to get the word out, so make sure to keep track of those expenses!
Have you taken up courses or workshops that increase your expertise and add value to your business? If you have, here’s some good news for you: these educations costs are deductible! When you first start out, there’s so much to learn and figure out. Why not invest in a value-added course that comes with some tax perks?
3. Home office expenses
The current pandemic has forced many of us to work from home. If your home office is your principal place of business, a portion of your housing expenses may be deductible. Consult your accountant about whether you’re eligible and for how much.
4. Bank fees
If you have separate banks accounts and credit cards for your business, you can deduct fees such as service charges and transaction fees.
5. Telephone and internet expenses
Nowadays, many small businesses operate online and the internet has become a necessity. If internet services are crucial for your business, you can deduct your internet costs.
You’re eligible for these tax deductions for a reason! Small businesses are the backbone of the economy, and these deductions act as an incentive to grow and sustain your business. Make sure to know what deductions you’re eligible for, so you can reinvest those savings into your business.