Tax Tips for Service Business Owners
Wednesday, May, 7th, 2014 at 1:34 pm by Mike J. Agugliaro
I know you want to master your business and take it to the next level. I know you want to make more money, build a great team, and experience financial and personal freedom like you’ve never seen before.
Running a service contracting business is a fulfilling, rewarding, FUN job. But there’s a lot of less fun stuff you’ve got to do too. HVAC contractors, plumbers, and electricians – you’ve got to take care of business. And that means taxes.
Don’t worry, though – once you get into the habit of doing your taxes, it gets a lot easier. That being said, there are a few things that you always need to keep in mind when it comes to reporting your earnings to the government. Consider these tips:
- Hire a professional CPA. Taxes are complicated and if you’re feeling overwhelmed, it’s best to find a reliable accountant who can go over everything with you quarterly and make sure you’re on track.
- Monitor your expenses. Do it daily. Don’t try to go back and remember everything when it comes time to file. Keeping a regular, updated log will make filling out your tax return much easier, even when working with a CPA.
- Get all the deductions you can. Are you taking advantage of all the deductions you have a legal claim to? This can include travel, meals, office furniture and supplies, and health insurance. Do some research – I promise it will save you money.
- Don’t use payroll taxes to cover operating costs. This is extremely important. If you’re using the taxes you withheld from employees to pay for business expenses, the IRS will go after your personal assets to get the money you owe them. Just don’t do it.
- Check to see if you’re eligible for an insurance deduction. If you provide health benefits to your employees, you may be eligible for a tax credit. The IRS has information online, or talk to your CPA.
- Don’t forget charitable contributions. If your company makes donations, you can also deduct it from your taxes. You’ll have to calculate the cash value of any non-currency donations.
Of course, filing taxes successfully is just a portion of running a profitable business. With ServiceKey, I’m helping service contractors like yourself unlock all the secrets of business mastery. Contact me today, or register for a free strategy call or my upcoming $23 Million Dollar Contracting Business Blueprint!
Mike Agugliaro, “Business Ninja”
Founder of the $23 Million Dollar Service Blueprint and Service Warrior Business Mastermind