How to pay less tax
You’re in business to make money, not to pay taxes. Yet this is the time of year when many small business owners cringe as we prepare our year-end numbers to calculate taxes due.
Here are three suggestions to help reduce your business taxes and make record keeping so much easier:
n Hold on to every receipt. Unless you are an Accountant, don’t second guess those write-offs. You might think some travel, meals and clothing expenses are not deductible. Your accountant will know more about allowable write-offs then you do, so hang on to all of your receipts for them to sort out.
n Create a filing system. Those tiny slips of paper end up everywhere…in our pockets, wallets, briefcases and shoeboxes. It’s too easy to lose them, so create a simple filing system that works just for you.
n Think bottom line. It’s not how much money your business earns, but how much profit you net. Slightly changing how you spend your money can greatly impact your bottom line. Want to reward your hard-working employees with dinner and drinks? You’ll only be allowed to deduct half of what you spend on them. Instead, book a hall and hire a catering company and write off the entire bill.
Learn more about this topic in the free STAPLES BizLaunch Seminar titled ‘How to Pay Less Tax’ now delivered inside participating STAPLES Business Depot locations. To find a free seminar near you, please visit www.Staples.ca/bizlaunch.