Skills in managing small business finances will be able to reduce the tax burden that must be paid legally, meaning that you do not violate tax regulations. There are several ways/strategies that small entrepreneurs can use to save taxes as follows:
1. Pension Funds
Pension fund payments made by business people can reduce business taxable income, or individual taxes on business owners or employees.
2. Insurance Premiums
Paying business insurance premiums is one of the costs that can reduce business income tax.
3. Rental Fees
If entrepreneurs use part of their house for an office or business premises, then they can determine or estimate appropriate rental costs, water and electricity usage will be deductible in the income statement so that it will reduce taxes.
4. Hire a Family
If your business is supported by family then pay them a decent salary, every gift can be written as a bonus so it will reduce taxes.
5. Depreciation and Amortization
Don't forget that as an entrepreneur you have to calculate depreciation on office equipment, be it computers, air conditioners, machines and vehicles, while amortization is to reduce patent rights, trademarks, etc.
6. Other areas to reduce business income taxes.
Small businesses often forget about giving bonuses, Christmas allowances to employees, travel costs, waste processing costs, etc.
1. Pension Funds
Pension fund payments made by business people can reduce business taxable income, or individual taxes on business owners or employees.
2. Insurance Premiums
Paying business insurance premiums is one of the costs that can reduce business income tax.
3. Rental Fees
If entrepreneurs use part of their house for an office or business premises, then they can determine or estimate appropriate rental costs, water and electricity usage will be deductible in the income statement so that it will reduce taxes.
4. Hire a Family
If your business is supported by family then pay them a decent salary, every gift can be written as a bonus so it will reduce taxes.
5. Depreciation and Amortization
Don't forget that as an entrepreneur you have to calculate depreciation on office equipment, be it computers, air conditioners, machines and vehicles, while amortization is to reduce patent rights, trademarks, etc.
6. Other areas to reduce business income taxes.
Small businesses often forget about giving bonuses, Christmas allowances to employees, travel costs, waste processing costs, etc.
