Great Ways To Reduce Your Small Business Tax Bill

| September 4, 2015 | 0 Comments

At the end of the tax year, you might be shocked to see the amount of money you need to hand over. Often, we find that small business owners have a lack of understanding when it comes to that subject. There is no need to give your profit to the IRS when you can invest it back into your business. Today, we’re going to highlight some simple ways of reducing your tax bill without doing anything illegal. Most of you will have noticed that companies like Amazon have a huge turnover. However, they never end up paying much tax. That is because they constantly invest in growth.

Spend more on marketing throughout the year

Your company can spend as much cash on marketing as it deems appropriate. Advertising and promotion are keys to success in the business world. So, you should look for different avenues and spend more money. Online promotion usually works best these days. Print has been dead for years. Just contact a digital marketing agency, give them some funds and hope it pays off. In most instances, your marketing arrangements will become profitable. That means you need to keep investing.

Employ more specialist staff

Cloud accounting services are all the rage these days. However, business owners who need to spend money should stick with the traditional option. Employing specialist staff will mean there is always someone on hand to deal with issues. You should only try to cut back if your business is failing. Presuming your company is prosperous, you can spend a little more on decent workers. At the end of the day, employing more people has to be better than handing over your money to the government. What did they do for it?

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Treat yourself on business trips

Image is everything in the business world. Those who appear successful usually end up that way. So, you can afford to spend a little more whenever you arrange a business trip. Fly first-class, stay in fancy business apartments, and treat your clients to expensive meals. That will help to reduce your profits and ensure you promote the best first impression. You could even travel everywhere in an upmarket taxi if you don’t want to hire a car. Sometimes being driven is much nicer than navigating the roads yourself.

Move to larger premises

Moving your business is always going to involve a lot of hard work. However, it could be the ideal solution for reducing your tax bill. You can move to somewhere much bigger to guarantee you have room for growth. That is one of the most popular strategies used by successful companies around the world. Those firms that make the highest profits tend to build new premises to ensure they spend even more.

Now you know how to reduce your tax bill without breaking any laws, I hope your business will progress at a more suitable rate. When all’s said and done, you can spend as much cash on your company as you like. So, don’t make the mistake of releasing it to the government until you are running a stable operation. There are just too many other things you need first.

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Category: Tax

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