Home Based Business? How to Leverage Your Taxes to Maximize Write-Offs

Taxes can be a major expense for small business owners, especially if you aren’t leveraging the available write-offs that are applicable for your company. Whether you have an office location or you are working out of your home, it is important that you work with a qualified financial professional who can help you save money on tax expenses. Hiring a small business bookkeeper is a great way for you to maximize the small business write-offs that are available, because your bookkeeper will help you assess monthly expenses in order to identify potential write-offs.

Benefits of a Home Based Business

If you run your business out of your home, there are many aspects of your working space that might qualify for tax write-offs. As always, you should talk with your accountant to verify the applicable laws and how they relate to your individual situation. These are some of the home-based write-offs that might be considered:

  • Mortgage or Rent
  • Gas and Electric Utility Bills
  • Office Furniture
  • Computers and Electronics
  • Cell Phone Services
  • Internet Services
  • Office Supplies
  • Car Mileage

You can talk with your bookkeeper and accountant about the way your home space is used for your business, and they can help you determine the right amount of expenses to write off based on your individual needs.

Why You Should Maximize Your Write-Offs

It is important that you are working with a qualified bookkeeper who can help you maximize your write-offs, because this process could possibly decrease the amount of taxes that you will need to pay. When these home expenses are used for business purposes, then a portion of those expenses are directly applicable to the management of the business which qualifies them as tax write-offs.

As always, it is best to keep detailed records regarding your tax write-offs, so that you can verify the records if they were ever needed. These records should include an on-going tracking system recording both incoming and outgoing expenses, and this system should be managed by your bookkeeper or accountant. Additionally, you need to make sure that you are keeping any applicable receipts or documentation that shows how the expenses are related to your business.

Do you need help maximizing your tax write-offs each year? Contact Easier Bookkeeping for more information about the professional bookkeeping services that are available. We are a team of experienced online bookkeepers offering affordable bookkeeping services for all types of small businesses. Contact our team for more information about the services that are available: (888) 620-0770

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