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No one understands the old saying “you have to spend money to make money” more than a small business owner. Running a small business does involve a lot of expenses – so finding ways to save money is key to long-term success. 

One of the biggest financial obligations for small business owners is taxes. By implementing a solid tax-planning strategy, you can avoid unpleasant surprises on your tax bill and keep your business’s bottom line healthy.

Neely’s Top Small Business Tax Planning Tips

Here are eight strategies to help you develop a solid tax planning strategy for your small business.

1. Choose the right business structure: Whether you’re a sole proprietor or an LLC, the structure you choose can have a significant impact on your taxes. Each comes with its own tax advantages and liabilities, and it’s best to consult with the experts at a professional tax service to fully understand the implications of each.
2. Take advantage of deductions: Deduct expenses such as office supplies, equipment, and business travel. Don’t overlook deductions for home offices or vehicle use. And be aware that some deductions, such for a home office or for capital losses, could carried forward for use in a future year.
3. Hire family members: Hiring family members, especially children, can reduce your taxable income while keeping payroll in the family.
4. Maximize retirement contributions: Retirement plan contributions not only secure your future but also reduces your taxable income. Maximize contributions that are made pre-tax, meaning your paycheck has less taxable income on it each pay period. A tax consultant can help.
5. Utilize tax credits: Take advantage of available tax credits, such as the small business health care tax credit or research and development credit, to further lower your tax bill.
6. Stay informed about tax law changes: Tax laws are complicated and can see significant changes from year to year. Keep up with the latest rules to avoid penalties and take advantage of new tax-saving opportunities.
7. Employ tax-efficient business practices: Use strategies like delaying or accelerating income and expenses to reduce your tax liability each year.
8. Hire a professional CPA firm: We said it before: Taxes are complicated. Working with tax professionals ensures you’re maximizing every opportunity to save and avoiding surprises.

Get Tax Help for Your Small Business with Neely’s

Don’t leave your small business taxes to chance. When you need tax services in Roanoke, Neely Accounting Services is your trusted local advisor. We have a deep understanding of tax laws, small business needs and tax solutions that work. Work with the professional Roanoke CPAs at Neely’s to keep your small business tax plan on track.

Have you ever gotten a phone call or email from someone making claims about your taxes but something just felt… off? If so, you could have been the target of a tax scam. Sadly, where there are taxes, there will be attempted scams so it’s important to stay vigilant.

In 2023, the IRS received 294,138 complaints of identity theft, the second highest in history. From email to social media, advances in technology provide new ways for scammers to target people. It’s a good idea to stay aware of the most common threats so you know how to protect yourself. We’ve rounded up three of the most popular tax scams to watch out for this year.

Top Three Tax Scams to Avoid

A tax scam is categorized as fraudulent activity or scheme designed to illegally obtain money or sensitive personal information from a taxpayer. They’re usually perpetrated by someone posing as a tax authority, financial institution or even the IRS. There are a multitude of ways that someone might try to steal money or information but here are three of the most popular.

• Phishing Scams: Phishing scams involve fake emails or websites that mimic legitimate IRS communication to steal personal information. Scammers may send emails claiming to be from the IRS, requesting your sensitive information like Social Security numbers, bank account details, or credit card information.
• Phone Scams: Phone scams, also known as IRS impersonation scams, involve callers pretending to be IRS agents. They may threaten arrest, deportation, or license revocation if you don’t make an immediate payment. These scammers often demand payment via prepaid debit cards, gift cards, or wire transfers because they are hard to trace.
• Identity Theft: Tax-related identity theft occurs when someone uses a stolen Social Security number to file a tax return and claim a fraudulent refund. Victims typically discover the theft when they try to file their own return and it gets rejected because a return has already been filed under their SSN.

How to Protect Yourself from Tax Scams

If you are contacted by someone you don’t know claiming to need information regarding your taxes, here are some important things to keep in mind:

• The IRS will never initiate contact via email or social media to request personal or financial information.
• The IRS will not call to demand immediate payment using a specific payment method or threaten with law enforcement action.

It’s important to verify the identity of anyone claiming to be from the IRS of other tax-related entity before providing any information or money. Another way you can project yourself is to use strong passwords and keep sensitive documents in safe places. Be sure to keep a close eye on credit reports and tax accounts for suspicious activity as well. If you notice something strange, contact your bank or trusted tax professional right away.

Work with Tax Professionals You can Trust

Working with a local, reputable accounting firm can give you an extra level of protection against scams by providing a reliable advisor you can go to with any questions. Neely’s Accounting Services has been providing tax services to Roanoke, VA since 2007 and is a trusted resource for tax payers across the valley. Let Neely’s help you with all your tax needs. Contact us today.