4 Money-Saving Tax Tips for Small Businesses

It’s everyone’s (least) favorite season, tax season! No small business, or individual for that matter, wants to spend money on taxes. However, taxes are a fact of life. Death and taxes as they say. Us merchant cash advance companies often see a surge in cash advance applications around tax season. The reason is simple enough, people have to pay their taxes and they need some cash to do so.

Of course, we’d be happy to extend your small business a merchant cash advance if you need to pay down your taxes or do anything else. However, we’d also love to see you save some cash. Spend less on taxes, reinvest more in your own company! Luckily, there are several great steps you can take to lower your tax burden. Let’s go over a few of them.

1. Set Up a Home Office

If you are running your own small business, you need your own office space. Doesn’t matter what your small business involves. Doing web development and SEO work? Cutting hair, cleaning teeth, grooming dogs? Brain surgery? Rocket science? Whatever, having some private space to take care of business helps.

Renting an office costs money. Setting up an office at home, however, can not only be free, but can also help you save money! Why and how? You can deduct the costs of maintaining this office from your taxes! You’d better believe that many merchant cash advance providers have their own small office!

2. Deduct Technology Investments

These days, just about every small business has to invest in technology. Even if you run an old school pizzeria using a wood burning brick oven, you’ll probably need to invest in some technology. Perhaps you need a point of sales system, or a computer to do website development and payroll management.

Investing in technology can get expensive. In fact, one of the most common reasons small businesses come to us for a merchant cash advance or small business lending is to invest in technology. Luckily, your technology investments can also be written off on your taxes.

3. Deduct Your Rent!

You probably already know this, but your rental costs are deductible. For many small businesses, rent is one of their biggest costs. Rent gets expensive. Even if you work for yourself, by yourself, you can end up paying a lot in rent. Luckily, you can use your rental bill to lower your tax bill!

As merchant cash advance lenders we help many small businesses pay their rent month to month. This is especially common for younger businesses. In the long run, however, you can lower your costs by writing off your rental costs.

4. Use a Cash Advance and Pay Your Taxes on Time!

Our last small business tax tip is to pay your taxes on time. The IRS can levy hefty penalties on those companies that fail to pay their taxes on time. They can even take you to court! Don’t have enough cash on hand to pay right now? Talk to a merchant cash advance lender. They can give you the cash you need simply by providing a cash advance in exchange for a cut of your future sales!