As a small business owner, you already know that every penny counts. So, when it comes to preparing for your taxes, you want to take advantage of any and all money-saving opportunities you can. Today, we will discuss some tax-saving tips for small businesses you should know about this tax season.
Always Plan Your Tax Payments Ahead
Many small business owners pay their taxes throughout the year, so make sure you are well aware of your due dates and what payments are expected. This will give you an estimate of what may need to be paid. Set funds aside regularly, so you aren’t surprised when your tax bill is due.
Track All Your Spending
You also want to keep a close eye on what you are spending throughout the year as well. Budget tracking is good to have in place and is an important step you don’t want to overlook. Hold onto all your business receipts, track your expenses, and maintain accurate information.
Find Your Deductions
Next, you want to make sure you find and take advantage of any and all deductions available to you as a small business owner. Some small business owners can even deduct the cost of business insurance from their taxable income.
The business or commercial insurance you use goes alongside the other costs involved in the business. To take advantage of this, make sure you fill out all the right paperwork. As long as the insurance premiums you have been paying all year benefit your business, you can deduct them. However, if you are a sole proprietor, you may not be able to deduct insurance premiums in some cases.
What Premiums Can You Deduct?
To get a better idea about what you can and cannot deduct for your small business, you can check the IRS Business Expenses Guide.
- General Liability Insurance: this covers legal expenses and property damage when your business is sued or causes injuries
- Professional Liability Insurance: this is also known as errors and omissions insurance and covers professional negligence
- Commercial Property Insurance: this insurance compensates you for the repair and replacement costs if your property is damaged or stolen
- Business Interruption Insurance: This coverage is also typically included in your property insurance policy. It covers profits lost when the business has to shut down due to a catastrophe such as a fire or other covered event
- Cyber Liability Insurance: this covers lawsuits and other expenses related to a data breach
- Worker’s Compensation Insurance: an employer is required to carry this insurance type in most states
- Commercial Auto Insurance: this coverage is for liability and property damage that may be associated with an accident involving a business owned vehicle
Contact us
To learn more about your commercial insurance options, contact the experts at Panorama for information. When it comes to saving money for your small business, you want to take advantage of every opportunity you can while ensuring your business is covered. Call: 818-781-6630
