The top tax-saving strategy for business owners
The easiest way to keep your tax bill as low as possible is also one of the most straightforward strategies, and you probably won't hear any social media influencers talking about it!
No one wants to pay more tax than necessary. This leads many taxpayers to search for clever hacks and schemes perpetuated by unreliable and unaccountable social media influencers. Rather than spend time and money pursuing tactics that might get you into deeper trouble than expected, follow KISS, one of the oldest principles: Keep It Super Simple!
So what is this super simple strategy to keep your tax bill down?
It’s what I call the ABCs of Self-Employment!
Accounting: Have and keep good, up-to-date records of your business income and expenses. I recommend using my Bookkeeping Made Simple System until you’re ready to upgrade to paid bookkeeping software, such as QuickBooks Online.
Banking: Open a separate checking account for your business. Have all your business income deposited into that account, and pay all your business expenses from that account (or use a separate credit card if you prefer). For business banking, I recommend Relay.
Counsel (the legal kind): Talk with an actual attorney and make sure you have the proper legal protections and safeguards in place. That includes business registrations, contract templates, and insurance coverage. I recommend Counsel for Creators to get your legal questions answered.
Those may not sound like sexy tax-saving strategies. But having suitable systems and processes in place for your business's financial, accounting, and legal aspects will give your business a solid foundation. That will help ensure your business operates as efficiently and effectively as possible.