PAYING TAXES has its benefits as the government is able to provide services such as public education, law enforcement, civic maintenance and upkeep, etc.  However, taxes can bring down a business if they are not kept in check.  This is because they are seen as an expense and the higher they are, the more an individual will have higher operational costs.

A business owner needs to finds ways in which he can reduce the taxes that he pays so that he can be able to make more profits and turn his business into a success.  Some tips for businesses to reduce their payment on taxes include the following.

All businesses are required to file their tax returns annually.  At times, a business owner may file their return late, which could lead to more taxes as late payments are usually fined.  If for one reason or another, a business owner cannot file his tax returns on time, he should be able to obtain a filing extension.  This will ensure that he is not required to make any additional payments on his taxes as this will count as expenses that have not been budgeted for.

This is not only beneficial to an individual when they retire but can also be used to reduce taxes that they pay.  This will allow deductions on taxes on basis of retirement.  However, one should set up a retirement plan that will benefit them and they can seek advice from a financial advisor for a retirement plan that would be suitable for them.

Although all businesses should ensure that they keep records that are accurate and up-to-date, they can also be used to reduce tax payments.  These records should be kept for as long as possible and should include all expenses that have been incurred even if they are small ones. This is because most expenses that are seen as small turn up to be big ones and will thus enable business owners to keep track and manage their expenses.

Though most expenses will be kept in a business record, one also needs to keep record of their travel and entertainment even if they are informal.  This will enable them to keep check on all types of expenses and when they reduce them, their profits will be higher.  When profits are high, taxes will not have an effect on it.

One needs to run their business well so that if they incur a loss, they can be able to deduct this from their taxes.  However, they need to provide proof that it was making profits and this can only be achieved by having records that are accurate and up-to-date.

One way to ensure that one does not pay too many taxes on their business is to increase their profits.  This can be done by effectively marketing products so that they can attract more customers.  One can also add a new product to their list of products but still ensure that they are of high quality so that they can be able to maintain their customers.