Whether you are a small business owner or you run a large organization, you will always be on the hook for some kind of taxes. However, there are always strategic ways to save on taxes as long as you operate within the laws.
While your tax accounting consultant is the best source of tax-saving strategies, you should not hesitate to bring some of your own ideas to the table as well. Here are some tax saving strategies you may want to consider:
1. Change Your Business Structure
The structure of your business entity significantly impacts how your business pays taxes. So, an effective tax accounting way to save is to just fill out a few different forms and change your business structure. If you did not consider this when you first formed your company, now is the time to reevaluate it. Talk to your tax accounting expert or CPA to see if this strategy might help you save taxes.
2. Hire Independent Contractors Instead of In-House Employees
Before you add another employee to the payroll, it is important to consider the subject of payroll taxes. These taxes are one of the largest taxes businesses you are required to pay, at least twice a month.
One sure shot way to get around paying payroll taxes is by hiring freelance contractors instead of employees. Keep in mind that there are certain rules about what makes up an employee and what makes up an independent contractor. However, once you make sure you’d be in compliance, you might be able to get by with contractors.
3. Make Retirement Contributions
Check if you have some cash to make additional retirement contributions by the deadline before you file your taxes. This will make up for your business income, and depending on your retirement strategy, you won’t be required to pay taxes on the contribution until your retirement or maybe not even then. Your tax accounting consultant will be able to help you determine whether you can manage an extra contribution.
4. Take Advantage of Tax Credits
Ask your CPA to check if you qualify for any tax credits. You might be able to get a tax credit for offering family leave to employees, making certain energy-efficient purchases, providing access or services to disabled persons, or for going “green”.
Carefully analyze your purchases, benefits, and services over the last year to see if your business might be qualified for a tax credit.
5. Change Your Depreciation Schedule
Few business owners realize that they can change their depreciation schedule and save money on taxes in the process. Your tax accounting CPA will need to work the numbers since this is a complicated calculation, but if you have substantial assets in your business (like heavy equipment and work vehicles), this is worth looking into.
Talk to a Tax Accounting Expert Today
CPAs and tax consultants at Remote Accounting Online can offer you even more ideas for saving taxes for your organization. We specialize in a broad spectrum of tax preparation, consulting, financial, and accounting services across a number of industries.
Our goal is to give you – the business owner – the insight you need to prosper in the current volatile times. To know more about our services, please give us a call at 541-772-5555 or contact us online today.