How can I save taxes..?

Discussion in 'Accounting and Taxes' started by williamjames732, Mar 26, 2013.

  1. williamjames732

    williamjames732
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    Hello,


    I am the owner of a small business. I lost my lots of money on tax. So, I want to know how can I save or minimize my taxes on my business.

    Thanks
     
  2. Fergal

    Fergal
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    My suggestion would be to speak to your accountant, if you have one. If you don't have one, try to get a good one in your local area. A good accountant can save you a lot of money in taxes, often enough to cover the fees you pay them.

    What country is your business based in?
     
  3. scifi

    scifi
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    Exactly ..for this you have to take advice from your chartered accountant or search an application (android based or IOS)which can help you start meanwhile you make search for an able accountant who can really help you...

    If you can tell your country, members of BAF might help you from their experience...
     
  4. Mark T

    Mark T
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    How "small" is your business? It actually depends whether you earn revenue not lower than a certain amount as recognized by your state department of commerce.
    In some coutnry, for example here in the Philippines - as far as I know, when your business earn less then Php100,000 [$2,500] a month or year [?] you have to pay tax. But when you earn less then you don't have to.

    Maybe you should talk to a financial analyst on how should you cover or at least lessen the taxes you are paying. It could be by reducing some resources of your business that ain't that necessary to the whole operation of your business, etc.


    Goodluck and Thanks,
    Mark T
     
  5. RaySaj2

    RaySaj2
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    it also depends on the formation of the company...for example here in the UK limited companies pay different taxes than a sole distributor....that is down to a number of reasons to be honest.....it all depends with the way your business is structured and what you are prepared to give away in sense.....

    by giving away in a sense I mean personal liability..with a limited company your personal assets are safe, by being a sole trader you can pay less taxes by claiming more expenses (petrol, food, living costs) but if anything does go bad you jeapordise your personal assets.
     
  6. williamjames732

    williamjames732
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    Thanks you so much guys for such a useful suggestions.

    :)
     
  7. Natcoweb

    Natcoweb
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    What have you decided to so, the OP?
     
  8. kaamil20

    kaamil20
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    You still have to report any earnings as income, but there are restrictions on deducting expenses and you can't deduct a loss. To avoid this problem, run your activity in a business-like manner, including having a separate bank account and having business cards printed. it is the best way to save taxes.
     
    #8 kaamil20, Feb 3, 2017
    Last edited by a moderator: Feb 3, 2017
  9. Jamel11234

    Jamel11234
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    There wouldn't be much that you can do. Business expenses are tax deductible in that they reduce your revenue before it is subject to taxation. Then you are taxed on what is left over (Net Profit). If your CPA reviews your books for the year and determines that your books are accurate and that you are showing a profit then there won't be much flexibility to lower your tax responsibility.

    One way you may lower taxes is to check for errors in how your transactions were classified. For example, if you or your bookkeeper classified an expense (profit and loss) as a capital expenditure (balance sheet) in error then you are missing out and that tax deduction.

    That's your best bet..that is why its important to get a good CPA and follow his or her lead during tax season. They will look for ways to legally lower your tax responsibility mostly by making sure that your books are accurate......beyond that there is nothing that can really be done.
     
  10. florenceclarke

    florenceclarke
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    Tax preparation is necessary and an accountant is the only way to get tips and tricks to save the business profit. However, there are few software tools available which can help for the same.
    I suggest you an outsource option as well which is more sophisticated in the direction of managing accounting and finance.
     
  11. Megan Rae

    Megan Rae
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    Whatever you do, make sure that you check and double check everything. It is one thing to save money and it is another to be taking shortcuts, then paying the penalties later on. I know this because it happened to us about 2 years ago. 6k in penalties is no joke
     
    #11 Megan Rae, Jun 27, 2017
    Last edited by a moderator: Jun 27, 2017

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