How Do Some Companies Pay Fewer Taxes?
No one looks forward to paying taxes, whether it be personally or as a business owner. But some businesses manage to avoid certain Maryland taxes or pay less than others. How do they manage that?
Keep Careful Track
Good bookkeeping is a huge way businesses manage to pay less for taxes. By having a detailed record of income and expenses, small businesses can know with certainty where they can claim expenses and take deductions. By having good bookkeeping you can also know, without a doubt, what your actual profitability was for the fiscal year.
Know What Is Considered an Expense
By knowing what expenses are tax deductible, you can lower the amount you owe due to profit. Likewise, spreading those expenses out can help you pay less in the long run. When purchasing expensive equipment you may be able to spread that deduction out, or claim it all immediately, depending on what would better suit your tax situation. Unfortunately for most small business owners knowing what to claim and when to do it is difficult.
Working with a Professional
Knowing all the ins and outs of your company’s finances as well as tax law related to owning a small business can be near impossible for some small business owners. By working with a professional Maryland CFO, you can ensure you are staying within the law, while also keeping as much of your profits as possible.
A professional tax adviser will know what deductions you are able to claim, and can help you lower your amount owed. If you are trying to manage your businesses accounting by yourself, hiring a professional can help you become more profitable, while also keeping more of those profits in your business.
If you own a small business and you are already having anxiety about April, contact The CFO Source today. Our business tax advisers can help you get a handle on your company’s finances while putting your mind at ease. Utilizing an outsourced CFO may be a great option for your small business, and we’d love to discuss the options available to you.