Small Business Tax Savings Strategies

The United States tax code is notoriously complex, and small business owners have a lot to keep track of. Fortunately, there are a number of strategies that can be used to save on their taxes.


If you are an entrepreneur, you can talk to your accountant about tax savings strategies. Your accountant will be able to help you determine which strategies make the most sense for your business.


Keep reading to learn about 5 smart tax savings strategies for small business owners!


1. Understand which deductions you can take advantage of

The first step in saving on your taxes is to understand which deductions you can take advantage of. You will need to make sure that you are eligible for the deduction. Keep track of your expenses carefully and make sure that you are only deducting the expenses that are directly related to your business. It is important to keep good records of your expenses so that you can show the IRS that you are eligible for the deductions you are taking. 


2. Stay on top of your expenses
One of the best ways to save on your taxes is to stay on top of your expenses. If you are able to track your expenses carefully, you will be able to deduct a lot of your business expenses come tax time. It is a good idea to set up a system for tracking your expenses. You can use software like QuickBooks or Excel to track your expenses. Alternatively, you can use a simple notebook to track your expenses.


3. Make the most of your retirement accounts

If you are a small business owner, you should take advantage of retirement accounts. Retirement accounts can help you save on your taxes in a number of ways.


  • Retirement accounts allow you to deduct your contributions from your taxable income. This can help you reduce your tax bill. 
  • The money in your retirement account can grow tax-free. This means that you will not have to pay taxes on the money that you make from your investments.
  • When you retire, you will only have to pay taxes on the money that you withdraw from your retirement account. This can help you keep more of your money in retirement. There are a number of different retirement accounts that small business owners can take advantage of, including 401(k)s, SEP IRAs, and SIMPLE IRAs. Talk to your accountant to see which retirement account is right for you.


4. Keep your business and personal expenses separate
One of the best ways to save on your taxes is to keep your business and personal expenses separate. If you combine your business and personal expenses, it will be harder to track your business expenses come tax time. It is a good idea to open a separate bank account for your business. This will make it easier to track your business expenses. You should also get a business credit card to use for your business expenses.


5. Stay organized and keep good records
Last but not least, it is important to stay organized and keep good records. This is true regardless of which tax savings strategies you use. If you are organized and keep good records, you will be able to save time and money on tax. You will also be less likely to make mistakes on your taxes.

Closing Statement

These are just a few of the many tax savings strategies that small business owners can use. Talk to our accountants on (405) 384-4900 or email marc@boulangercpa.com us, to determine strategies that make the most sense for your business!

Professional Image of Marc Boulanger, CPA

Marc Boulanger


Marc views his accounting business as an extension of his family. And while he holds a Bachelor of Arts in Business Administration and Accounting and a Masters of Science in Accounting, he values traveling around the country with his wife of 30 years and 5 kids, Marc learned that communication is the key to effective team work.


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