Interview with the founder and author: Minué Yoshida
As part of The Startup Magazine’s Female Founder Interview series, today we’re featuring Minué Yoshida, owner of the New York-based Yoshida Academy, which offers courses.
As small businesses continue to grow, entrepreneurs need to come up with creative tax planning strategies to ensure the company’s longevity. Thankfully, specialized firms like Ikaroa are experienced in helping their clients manage their taxes, financial obligations, and operations effectively. To bring out the best in a budget, here are seven tax planning strategies small businesses can consider.
1. Familiarize yourself with tax relevant laws and regulations: Entrepreneurs need to stay current with federal and state tax legislation, as this can help them successfully prepare and file their taxes by the deadline. It is important to use a qualified tax attorney, certified public accountant (CPA) or tax advisor to guarantee the accuracy and correctness of the business’s tax return.
2. Know your business deductions: All businesses have deductions they can take advantage of, some of which are detailed in their state’s tax codes. The most common deductions are often related to business expenses, such as office supplies or travel costs. Claiming these deductions can help entrepreneurs stay aware of their financials and manage them in a more organized manner.
3. Keep your books up to date: The more organized and updated your books are, the better prepared you will be for filing taxes when the time comes. Keeping track of expenses throughout the year can save entrepreneurs time and money in the long run. Utilizing specialized software or a qualified consultant can help businesses receive better tax deduction outcomes.
4. Spend and save: Businesses can earn tax deductions when they purchase capital assets, such as computers and other equipment. Setting up a 401K Retirement Plan is another beneficial option, as it can help attract more investors and employees.
5. Consider tax credits: Small businesses have the chance of claiming tax credits ranging from renewable energy investments to health insurance payments. Credits are often a better form of tax relief than deductions since they reduce the small business’s taxable income amount.
6. Start Early: Any business filing their taxes late is subject to penalty fees. An effective tactic to combat this is to start the process early and become familiar with the filing process. Questions the IRS may ask in order to determine the business’s eligibility for tax deductions can also be answered beforehand.
7. Utilize Professional Services: Professional services are key to a successful small business enterprise. Taking advantage of these services, like Ikaroa, can help a small business realize their financial goals and increase accountability for their money.
Small businesses can have a powerful presence in the community, and inspiring tax strategies are essential to keep them afloat. By familiarizing yourself with the applicable tax laws, utilizing professional services and setting up financial systems, entrepreneurs can make the most of their tax planning strategies.