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Financial Advice for corporate businesses tax

What is corporate business tax?

Taxes are an inevitable part of our daily lives and even more so if you’re doing business. Taxes collected from businesses, called corporate business taxes, are usually the highest taxes in a country. No one really likes paying taxes, but we need to for many reasons. One reason is that taxes actually keep a country running and allow businesses to thrive and be more profitable by creating circulation. So since taxes are so important and evading them is a crime we have to make sure we pay them. Of course all business owners want to make sure they pay the right taxes and that they aren’t paying more than they are obliged to. 

Why you should hire an advisor to help you with your taxes?

When starting a business most people choose to hire a tax accountants or other type of financial advisor. They do so because taxes and financials of a business are a tricky part, especially if you’re new to it. Hiring an external advisor is an extra cost, that’s true but it may also help you save a lot on unnecessary costs (read taxes). Since these people usually have a lot of experience already, they know exactly what they can do and what they need to look for. When choosing an accountant or a firm to do your tax work it is a good idea to make sure to choose someone or a firm that has experience in your industry. 

A merchant account advisors can help too in choosing the account merchant that fits best with your business’ needs. They can also guide your merchants to make sure your account entries and other aspects go smoothly.

Can you do it yourself?

Surely you must have heard about people lowering their gross income to pay lower taxes. This can be either legal or illegal. It can be legal because tax systems sometimes have flaws that can come as an advantage to business owners. As a new business owner you usually aren’t familiar with things like this which is why a tax accountant comes in handy. If you are still choosing to do taxes yourself here are some things to keep in mind.

Train your staff

Educational expenses such as seminars, convention fees and classes are deductible if these are used to educate or train your current employees. 

Keeping track

First and foremost, it is extremely important to keep close track of all your business expenses throughout the year. You should make sure they are entered into an accounting system in a regularly.

 

Donate the unused

Donating unsold and/or unused inventory can help with tax deductions. This also eliminated the need to spend money on storage of these items. 

Fringe benefits

Offering your employees fringe benefits such as child-care, vision and health assistance instead of salary raises might reduce taxes.

 

Here are a few more things to consider if you will be doing your taxes yourself.

1. 

Keep it professional: 

A rule that can never be emphasized too much. Is to keep personal expenses and business expenses separate. This means that you should have separate credit cards and checking accounts for business and personal use. 

2. 

Remember: 

Protect your business from a bad marriage. Getting to work together with your spouse is a great idea, but always make you’re your prenuptial agreement can protect you, your business and your family in case things go awry.

3. 

Hire your kids: 

You could “hire’ your kids to help you out. Since paying wages to minors can be tax free up to a certain amount. This way your kids learn the business and you pay a little less tax.

4. 

Mileage deduction:

when having to choose between gas bill tax deduction or getting money back for mileage, it is usually better to choose the mileage.

5. 

Educate yourself: 

Lastly, make sure to take a look at the Tax Laws that are applicable to your company or industry. Educate yourself on what might help you reduce your reportable gross income.

When starting or running a business taxes will play a major part from the very beginning. They are just inevitable and trying to avoid them might cost you more than just paying them. It is of course possible to deal with taxes wisely. The easiest way to do so is by hiring a tax specialist for your taxes. These specialists usually know all the applicable laws and know what to do to lower the amounts of taxes you pay.  Another option is to go about your taxes yourself. This is a little bit more difficult to do and might take you some time to work everything out and to find the hacks, but isn’t impossible.

 

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