Starting your own business means that you have to learn a lot of new skills that you might not have picked up before, but which are necessary to the success of your venture. Two of the biggest skills that you will need to acquire if you haven’t already are the abilities to lessen your tax burden and minimize the amount of waste within your company. If you can do these two things, there is a far greater chance that you will be successful as an entrepreneur.
Do Your Homework
The most important thing that you can do is read up on the tax rules and regulations, especially if you won’t be employing a tax expert. That way, you will know what you can and cannot deduct and you’ll be able to streamline your taxes without getting into any trouble with the IRS.
The need for getting clarity in all aspects of your business is high, but it becomes even more important when looking for the right candidates; so spend some time drafting your candidate criteria and really think about it.
Get a Good Business Credit Card
Having a good credit card in business is a great way to save money, which may surprise you. AMEX, for example, have a number of credit cards that will reward you for everything you spend with air miles. If you pay as many of your expenses as you can using that card, and then you pay the card off in full at the end of the month, you will have lots of free travel miles to use for those expensive business trips.
Be Careful About Free Mealst
Providing free meals for your staff and taking clients out to be wined and dined is a nice thing to do, but it can be very expensive and very wasteful when you overbuy. So, in order to avoid waste, if you are providing free meals, ensure that you check who will be there to eat them, and be sure to check if they have any allergies, It’s also becoming more acceptable to split business lunches, so don’t be afraid to do that. Oh. and keep all of those receipts so that you can deduct any important business lunches come tax time.
If your business runs a fleet of vehicles or even just one company car for that matter, you should track its mileage down to the wire. You can use apps like TripLog to do this and it is worthwhile because you can get your deductions right and prove to the IRS that your figures are correct. If you get your deductions wrong you could end up paying more than you need to or you could have the IRS not believe you and then you could end up with a penalty.
Invest in Your Education
As an entrepreneur, your skills need to be top-notch which means you may need to go back to school or enroll on professional development courses. If you decidxe to do this, do what you do when you send your employees on courses and pay for your classes from your business expenses. If you do this, you won’t accrue personal debt and your taxes will be lower. Just check with a tax expert that you’re eligible to do this first.