A penny saved is a penny earned. Remember this motto when starting your own business. It can also be said that a penny written off your taxes is a penny earned as well. Save each and every receipt you have of purchases made for your business and always check with your bookkeeper to see if you can use them as a write-off. Since some receipts can fade in time, it’s also a good idea to record them in a notebook or spreadsheet as well, including both the date, type of purchase and amount spent. You’ll be glad you went to all this trouble at tax time, because the right amount of write-offs can save you huge amounts of taxes.

Common Write-Offs for Small Businesses

Although a bookkeeper or accountant is the best person to say whether or not an item can be used as a deduction, common write-offs for most small businesses include office supplies, payments of work outsourced, legal fees, charitable donations, utility bills for the work space and; in some cases, mileage to and from places where the work was performed. Promotional items and advertising costs can be written off as well – which means that you can spend your money wisely by investing in give-away items that showcase your business’ name and logo, increase your customer base and profits, while allowing you the chance to save money on your taxes as well. Talk about an excellent opportunity to make money and save money at the same time.

Promotional Items That Make Sense (And Save Cents)

Many items such as promotional pads, pens, coffee mugs and calendars are excellent ways of reminding potential customers about your business. Every time a person picks up a pen, uses a notepad, takes a sip of coffee or glances at the calendar; he or she will see your business and logo and become even more familiar with it. When the time comes for that person to need a business such as yours – you’ll be the first one he or she thinks of. This is particularly important since it’s a way for you to make more money with your business while at the same time saving money with your taxes. In most cases, you can write these promotional items off as deductions. Be sure to check with your bookkeeper or accountant to make sure, and then invest your money wisely by promoting your business with tax-deductible promotional items.