Tax Agents Advice to Small Business Owners to Save on Taxes

Tax Agents Advice

The hardest thing to understand in this world is ‘income tax.’ Every small business owner tries various ways to minimize the tax legitimately.

Unfortunately, nine out of ten small business owners pay more tax than they are obliged to. So, it is advisable that they should seek the advice of tax agents to minimize it.

Here is the list of some of the advice given by a tax agent to business owners:

Use Accountable Plans

If being a business owner, you reimburse your employees’ travel, tools, entertainment or other costs, then you need to practice an accountable plan that meets IRS requirements. With such a plan, you can deduct some of the business expenses.

Don’t Overlook Carryovers

Certain deductions and credits have restrictions that can prevent a small business owner from using them fully in the current financial year, but could permit a carryover in the next year. Keep a track of the carryovers so that you don’t forget to use it in the next or coming years.

Few examples in this respect are listed below:

  • General business credits
  • Capital losses
  • Net operating losses
  • Charitable donations
  • Abandon your Business Property Rather than Selling It

There are various benefits of abandoning your business property rather than selling it at a nominal amount. Your business will undertake only an ordinary loss on the property, which is fully deductible. It can also save you from the capital loss which may be subjected to many limitations in the future.

Use Fringe Benefit Plans for Employees

Supplementary wages generate employment tax costs for the business, but if the business owner pays for certain fringe benefits to employees, tax related to these can be avoided.

A Tax Agent in Glen Waverley helps a business owner to possess the following tax benefits in this regard:

  • Health benefits
  • Educational assistance
  • Group life term insurance
  • Transportation benefits
  • Meals provided for convenience of employees
  • Shelter Profits in Retirement Plans

A business owner can easily setup a retirement plan for its employees. Due to this, the owner is not required to pay tax currently on his/her contribution provided towards retirement plans.

Do Year-End Planning

While tax planning is a year-round activity, a small business owner can achieve dramatic savings by taking actions at the end of the year. For instance, if a small business is on cash basis for accounting purposes, he/she can delay the billing work for the current financial year so that the payment will be received the following year. This effectively lowers the business profits as tax is deferred on the cash, which the owner could collect for one year.

Final Words

A tax agent can reduce the amount of taxes that a business owner pays. So, seek the advice of tax agents to reduce your tax burden.

If you are looking for Tax Agents in Glen Waverley, then you can definitely count on Opulent Accountants. They render high quality accounting as well as tax services to different businesses and individual entrepreneurs.

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Nishant Kosambi
Nishant Kosambi
2 February 2023
Excellent work by Dayan, Chamie, Lihini and the entire team. They have always been very professional and helpful. They have taken care of my business and personal tax obligations for many years. They have also sought financial solutions for me. I am very happy with how thorough Dayan is with his work. Clear communication and regular follow-ups all the way. 5 stars for this gem of a person and his team.
Ajith Ratnarajah
Ajith Ratnarajah
6 November 2022
These guys are very professional. You get the best of both worlds of a personalised service from a company rather than from an individual accountant. Their processes are well established. I would strongly recommend Opulent for any small, big companies and high net worth individuals.
Da Bella
Da Bella
12 August 2022
I consider myself extremely luck to be introduced to Dayan and his team. I found the solution to my loan requirement in one meeting itself...Super efficient, friendly and humble....Opulent finance rocks!!
srikanth chintalapudi
srikanth chintalapudi
11 July 2022
Dayan and his team did it again!!! They're proactive and provided timely advice in the recent sale of my investment property. They're advice saved me a lot of $$. Dayan and his team have been assisting me for the last 10+ years and they're always a lifesaver. Highly recommend!
Chamith Subasinghe
Chamith Subasinghe
15 February 2022
The team at Opulent have been extremely helpful and resourceful in securing a home loan for me. The responses have always been quick and progress made quickly through the loan application process. The advice provided by Opulent is high quality and very useful, special call out to Ishara and Dayan who have been very knowledgeable, experienced and professional. I have recommended Opulent to my friends and they have had positive experiences as well. I would highly recommend giving Opulent a go!
Daniel C
Daniel C
26 December 2021
Highly recommend Opulent Accountants! I've been lucky enough to deal with Hasi, Dayan and Charlene and all three of them have been a great help. Thanks guys.
5 November 2021
Great Accountants and Mortgage Brokers. Prompt, Professional, Well-informed and Responsive.
Kesh Aryaratne
Kesh Aryaratne
11 October 2021
The team at Opulent are professional, accessible, friendly and most importantly prompt in getting matters sorted. I have had the pleasure in dealing with both Dayan and Hasi who have guided me throughout and have been extremely helpful in getting my complex tax matters sorted on time and in a professional manner. Great work guys.
Mukesh S
Mukesh S
29 September 2021
I was apprehensive to take the plunge into refinancing my loans. However Dayan and his team were very patient and made it a point to respond to all my queries and doubts . They must be leading busy lives themselves, however they were flexible and accommodative of my requests for meetings at close of business hours. Further I noticed that they are particular in their and the customer's paperwork. Along with Dayan, I'd like to call out the efforts put in by Ishara for ensuring a smooth transition. She has ben patient with my many queries and diligent in her handling of the paperwork. Thank you Dayan and team.