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15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

5 Tax Tips for Small Business (How Working with an Accounting Services Ensures You Get Them)

 

happy accountantA knowledgeable and experienced accountant can be a small business’ best ally. Accounting firms not only provide tax services but can also aid businesses in reducing their tax responsibility and simultaneously increasing their profitability. Here are 5 key tax tips that accounting firms in Los Angeles can help you to implement.

 

1. Section 179 Property Deductions

If you have started to use certain property items within the last year, you may be able to use them as a deduction. Some common items include:

  • Computer software
  • Property used in manufacturing, transporting and producing goods
  • Business offices
  • Storage facilities

 

2. Deduct Stock Contributions

Many businesses donate to charities throughout the year to receive tax breaks. One way to capitalize on this deduction is to donate appreciable stock instead of money. By doing so your business will be able to deduct the current amount of the stock rather than the amount paid for them.

 

3. Tax Credits within the Affordable Care Act

The Affordable Care Act (ACA) offers tax credits that help to cover up to 35% of the premiums that small businesses pay for employees. (Note: This is set to increase in the next year.)

 

4. Small Business Jobs Act Tax Provisions

The Small Business Jobs Act includes over 17 different tax provisions to help decrease the tax burden upon small businesses.

 

5. Separate Personal from Business

For small business owners, especially those with a sole proprietorships, making sure that you keep your personal and business funds separate is critical. If you have not, local accounting firms in Los Angeles can help you to separate the two and make your filing process easier.

By keeping these tax tips in mind and employing them properly with the assistance of one of the excellent accounting firms in Los Angeles, you will be well on your way to increasing your profitability for the year. You can rest assured that you will not only file your taxes properly, but to also get the most from your return.