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.

Leave a Reply

Quote

captcha

Moumita Ghosh
Moumita Ghosh
2020-11-18
Verified review
We've been meeting Dayan for years now and he is great with his advice and is very knowledgeable and pragmatic. We recently used his services to get the home loan for our house and he and his team went above and beyond to get us the best possible deal. Ishara in his team was super communicative and responsive in following through and made the process very easy for us. Highly recommend them!
Cara Neela
Cara Neela
2020-10-24
Verified review
Dayan and Hasi are wonderful, wouldn’t hesitate to recommend them! They went through all with a fine tooth comb to ensure all was correct. Thanks to you both and the Opulent team!
Jason Barry
Jason Barry
2020-09-29
Verified review
I was looking for a different accountant and was recommended to Opulent Accountants. I have been blown away with there service. I wish I moved accountant sooner. Platinum Plumbing Enterprises P/L
Afshin Koohestani
Afshin Koohestani
2020-09-10
Verified review
Uditha Illeperuma
Uditha Illeperuma
2020-09-08
Verified review
Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
Dinesh Fernando
Dinesh Fernando
2020-09-03
Verified review
Very happy with the service provided in getting my tax returns done. Mr. Dayan is very helpful and professional and has extensive knowledge in his field of expertise. Highly recommend if you are looking for a hassle free and prompt service.
Ronald Turner
Ronald Turner
2020-07-16
Verified review
Opulent were absolutely fantastic to deal with, they are competitively priced and incredibly proactive and friendly. For me I have been much better off using their fantastic services as opposed to doing tax returns myself. Sum was amazing, incredibly knowledgable and super friendlyI'll certainly be back with Opulent next year
Milinda Wickramasinghe
Milinda Wickramasinghe
2020-07-05
Verified review
Opulent team has been fantastic and it has been truly a pleasure dealing with the team for more than 10 years. Dayan and Ishara have gone above and beyond to assist and communicated with me even when I was overseas. Excellent service has being provided in a professional and timely manner. I would highly recommend the team.
Chami Ranaweera
Chami Ranaweera
2020-04-28
Verified review
I have been working with Dayan last 9 years. All of my loans, refinance and tax are done through Opulent.Dayan and his team including Ishara are very helpful and easy to deal.
Edmund Lobo
Edmund Lobo
2019-12-02
Verified review
We were new entrants to the cattle farming scene. All the rules and regulations surrounding primary production can be very confusing. The team at Opulent Accountants walked us through all the steps, set up the necessary ABNs and Company / Trust accounts, filed the related pending BAS and Tax returns, and is currently keeping us up-to-date with all ATO related transactions. We recommend them highly to all.