Like most of today’s business owners, you probably don’t spend a lot of time sifting through the IRS’s website for tax-saving tips. But chances are, unless you're already a CPA, you still have a lot to learn about saving your business money on taxes.
If you’re already using a software like Quickbooks or Xero or even have an accountant or bookkeeper throughout the year, you’re off to a good start. But when tax season rolls around, those who don’t have a back-office solution that includes tax preparation and filing (like inDinero!) there’s more to be done to maximize your deductions, protect yourself from painful penalties, and achieve ultimate tax-filing efficiency!
Below you'll find a list of inDinero resources I've curated based on reader feedback, the number of shares, and general website analytics that indicate entreprneuers out there are finding them especially useful. I’ve included descriptions to provide a full picture of what each resource focuses on so you can determine what will be the most helpful for you as you journey into tax season or start prepping your business’s strategy for ultimate savings in years to come. Enjoy!
For your business’s most efficient tax filing season, download our free 3-piece business tax pack here.
Use These Helpful Resources to Prepare Your Business for Filing Taxes:
1) “92 Tax Deductions Every Small Business Should Know About”
If you’ve ever dug through IRS.gov looking for an answer to your question, you probably realized that they aren’t ones for cutting to the chase. You also may have noticed that when it comes to finding a comprehensive, straightforward list of tax deductions for small businesses, the IRS is pretty darn silent. So, instead of putting you through hours of hunting, we’ve done it for you and uncovered 92 potential small business tax deductions—and 11 that you shouldn’t even think about claiming.
2) “Startups! Don’t Forget to Claim the R&D Tax Credit”
As long as your expenses are related to developing new products and technology, it’s likely you’re eligible for the R&D tax credit. Because today's startups are typically focused on creating their own niches or finding original solutions to old problems, they are in an excellent position to take advantage of these tax credits. Use this post to learn more about the credit and consult the bonus guide to start claiming your business's activities!
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3) “Build Your Own 2016 Tax Return Calendar” [Infographic]
Even the busiest business owner can say on top of their taxes when they know what’s coming their way! Add the relevant dates in this infographic timeline to your calendar, so you can be the king or queen of compliance all year round. Your business will be in great shape with the IRS!
4) “Sales Tax Fundamentals for Businesses Who Sell Online”
In this guest post from Mark Faggiano, founder & CEO of TaxJar, he explains how eCommerce businesses can successfully navigate the sales tax landscape. Learn how to determine the sales tax actions your online retail business is responsible for so you can avoid paying penalties and facing other consequences.
5)“The Entrepreneur’s Business Tax Pack” [3-Piece Resource Pack]
Download the Entrepreneur’s Tax Pack to get your business ready for tax season. The full pack includes:
- [Checklist] Getting Your Books in Shape for Taxes—This handy checklist guides you to the financial reports you’ll need to file your taxes and claim your deductions. Huge time saver!
- [Guide] Tax-Savings Strategies for Entrepreneurs—30 pages of essential information on filing deadlines, how to avoid penalties, retirement plans, and the home office deduction
- [Workbook] Fill Before You File—Use this workbook to organize your data so your tax preparer can help you avoid potentially painful fees and penalties.
6) “On-Demand Webinar: Using Financial Reports to Hack Business Growth”
This on-demand webinar covers the metrics and financial reports you can use to allocate resources to the right strategies internally and with stakeholders. Use the handy timestamps to skip ahead to 10:19 and learn how tax authorities (like the IRS) use your business’s financial statements and reports:
7) “3 Pricey Tax Penalties Any Small Business Can Avoid”
This probably doesn’t come as a huge shock, but one of the most common questions we get from business owners is about saving money on taxes. The good news is, there are lots of ways for small businesses to lower their tax obligations. And while some do require more legwork than others, three of the most common tax penalties are also the easiest to avoid:
8) “Don’t Miss Out on These 8 Small Business Tax Deductions”
Identifying tax deductions can be quite taxing for people who do it themselves. If you’re an inDinero client - we do it for you, but whether you file your annual tax returns yourself or hire a professional, here are eight tax deductions that are definitely worth looking into for your small business or startup:
9) “What to do if You Commingle Personal and Business Funds”
Did you use business funds to pay for personal expenses? According to the IRS, personal expenses are not eligible business expenses deductible against taxable income. So, if you were to try to claim your personal spending as expenses on your business’s tax return it would raise some major red flags with all tax authorities and leave you susceptible to an audit. This post goes over what you can do to un-commingle a snafu transaction and avoid issues when it comes time to file:
10) “Our CPAs Answer Your Top Burning Tax Questions”
Early on in 2016, inDinero and Trinet decided to put their heads—and Twitter followers—together to see what burning questions small-to-medium businesses (SMBs) have about tax season. We received a wide array of questions from what types of insurance you can and cannot write-off on your taxes to strategies for anticipating and planning tax-related fees from activities that arise over the course of a year. From there, inDinero’s tax experts we happy to dive in and explain the overall concepts, best practices, and next steps business owners should know:
11) “Avoid the Tax Penalty: Converting Your Business From LLC to C-Corp”
Converting your LLC to a C-Corp can be a complicated process but, for the right business, should ultimately be worth the paperwork, legal fees, and extra taxes… And that last worthwhile task is exactly where some business owners drop the ball. It’s all too common that business owners don’t file a tax return after converting their company from an LLC to a C-Corp. Here’s why that happens and how to avoid the issue altogether if you decide to make that switch.
12) “The Socially Responsible Way to Save on Small Business Taxes”
Making charitable donations is a chance to intertwine your business’s tax strategy and its responsibility to give back to its community. While your organization should feel encouraged to give back in many different ways, here are a few giving strategies that you can help lower your tax liability for the year:
13) “How to Choose Your Small Business Entity”
Nearly all first-time business owners have to decide what type of business entity their company should incorporate as. This choice isn’t always straightforward and there can be many opinions from investors, partners, shareholders to take into consideration. This article goes over the different types of small business entities—including the tax implications and strategies each one entails—so you can identify which option makes the most sense for the business in the long term and its interested parties.
14) “Don’t Let Foreign Tax Obligations Get Lost in Translation”
The IRS exists to keep track the revenue individuals and companies spend and receive across the United States. This can get especially tricky for taxpayers that have international relations where funds could potentially go unaccounted for—which has been known to happen intentionally. Because of this, the IRS exerts extra energy toward documenting all foreign transactions and is quick to punish anyone caught manipulating their numbers with overseas accounts and transactions.
This article explains the various types of foreign dealings organizations will need to be aware of for tax purposes as well as the filing actions your business must take to stay in compliance:
15) “Paying Your Future Self to Save on Business Taxes Now”
Would you rather save on business taxes OR fund a comfortable retirement? This article is here to tell you that, as a business owner you can do both! See the pros and cons of different options business owners have for saving for the future while also lowering their current taxable income and filing responsibilities.
16) “What Businesses Should Know About K-1 Forms Before They File Taxes”
If your business is a Partnerships or S Corporation, you’re required to issue K-1 forms to your partners and shareholders or pay the hefty, compounding price. As a passthrough entity, the K-1 is what those stakeholders will use when filing their individual tax returns (they’ll need to know what income or losses to claim on their 1040). This article digs in more about when and how to issue these forms each year:
17) “Finding and Filing the Right Forms for Your Business Taxes”
When it comes to filing taxes as a business, knowing which forms you’re required to file is half the battle (the other half is paying on time!). Follow the guidelines in this article to find which forms are right for your business and will help you avoid fees and penalties.
18) “What Small Businesses Can Do Now to Save Time & Money on Taxes”
Surprisingly, most entrepreneurs aren’t too quick to complain about paying business taxes as they are about the actual administrative burden of managing and filing them. In this article, we let you in on a few secret ways to streamline the process of working with your CPA to file business taxes AND maximize your savings. A major win-win!
19) “4 Things You Need to Know about Writing Off Your Home Office”
With so many of us true entrepreneurs running side businesses and full-time jobs out of our personal dwellings, the home office deduction is a tax saver you don’t want to miss out on!
While this will allow you to turn what were once living expenses into business tax savings, it should not be seen as a privilege to abuse. Here are four steps you need to keep in mind before you write off your home office:
Which of these resources have you found most helpful? Do you have other tips or resources to share?
As always, let us know in the comments!