While understanding which small business tax deductions you can claim is certain to benefit your bottom line, identifying these write-offs isn't necessarily the easiest thing in the world.
In its Small Business Taxation Survey, the National Small Business Association (NSBA), stated that the stress and frustration associated with filing and completing federal income taxes was regularly ranked as one of the top concerns among small business owners.
Of the more than 675 businesses surveyed:
- 1-in-3 reported spending in excess of 80 hours — 2 full work weeks per year on tax compliance.
- 1-in-5 spent more than 120 hours — 2.5 weeks per year.
The Small Business Tax Deductions You Need to Know
While this list can help you prepare for an in-depth conversation with a tax expert, it does not replace the need for working with qualified bookkeeping and accounting professionals in order to keep your business on track and the Internal Revenue Service (IRS) or Canada Revenue Agency (CRA) happy. There's also no better practice than to be proactive by having processes and strategies in place throughout the year in order to prepare for tax time.