There are many—legal!—ways to reduce your taxable income, many of which are good for your business. Learn if some of these are right for your business.
- Reducing your taxable income is possible and legal.…Many of the ways you do it are good for your business.…Some of these we discussed might be right for you.…In my experience as both a corporate executive,…and later as a business owner, I've had trusted…relationships with my financial partners,…CFOs and controllers in my former life,…and especially accountants now as a business owner.…The following tips should be considered…alongside advice from your accountant or tax lawyer…as what is legal and expected in some countries,…may be considered tax fraud in another.…
Here's a checklist to use as a starting point.…Are you taking advantage of deductions?…In many countries, most business expenses…are deductible from gross income.…The impact of which is that you have…a smaller revenue base that's taxable.…Just make sure that you're making…the right deductions for you.…Sometimes, that could be a choice to make…that's not super-clear.…For example, if you have vehicles…as a part of your cost base, in the US,…you can use actual cost on mileage-based deductions.…
- Determine how business structure and location impact the taxes on your small business.
- Break down the different types of taxes.
- Identify ways to reduce taxable income.
- Recognize strategies to that are helpful in reducing the tax rate.
- Formulate a plan on how to best manage your small business taxes using a tax planning tool.