8 Common Missed Tax Deductions for Small Businesses

Hello Entrepreneurs!

I know you love your home-grown business, and you’re passionate about what you do, but we didn’t get into business for ourselves just for the sense of pride, right? Every good turn deserves another, and you should be able to do what you love and turn a profit at the same time!

For a lot of business owners, the biggest killer is trying to run their business while also juggling the front and back office. You may think handling your own bookkeeping and accounting might save you time and money, but it could be costing you more than you think, on top of the stress that it brings.

Having worked in the hospitality industry for over 20 years, I learned how to read the numbers, which in turned allowed me to be a more insightful bookkeeper. In my years as a bookkeeper working with CPAs and major bookkeeping firms, I saw a lot of businesses of all sizes running into the same pitfalls of missing out on major tax breaks.

My passion comes from a long line of small business owners in my family; from house painters to gym equipment repairers, I saw firsthand how hard they worked and how many hours they put in. Self-care isn’t just about bubble baths and pedicures, but it’s also about delegating tasks to experienced professionals who can take a major weight off your shoulders while simultaneously putting more of your sweat equity back into your well deserving pockets. You DESERVE a break and more free time to enjoy your hard-earned money.

Wouldn’t you love keeping more profit every month AND spending more free time at home instead of spending hours every week doing the books?

Here are some of the most commonly missed tax breaks that I help my clients find more money every month and free them from the stress of financials.

1. Bookkeeping For Your Petty Cash Expenses

Most small businesses use at least some petty cash. Petty cash is cash that you keep back for your business in order to make change for customers or to pay for small purchases that your business needs to succeed. If you keep good records of what you spend the money on, you can deduct much of the costs during tax season. Whether you or your employees are responsible for using petty cash, be sure to note what you spent it on, how much you spent, and when you spent it. Then, once a month, input all of the records into your bookkeeping system. This can add up to hundreds or even thousands of dollars in savings come tax season.

2. Saving Money on Your Home Office Expenses

3. Tracking Your Car Expenses

4. Managing Other Types of Travel Expenses

5. Deducting Small Business Document Preparation Expenses

6. Claiming Section 199A Business Income

7. Deducting Carrying Charges and Related Fees

8. Claiming Contributions To Retirement Plans

Work With a Bookkeeping Expert

Filing your taxes can be quite complicated when you run your own small business. If bookkeeping is not your forte, don't be afraid to reach out for help. Contact Action First Accounting to learn more about our services and how we can help you save money during tax season.