Coaching is becoming an increasingly important part of business improvement. This includes executive and leadership coaching focused on developing business managers and leaders, as well as working on specific areas of the business.
A good example of this second option is tax coaching. This is a process any NJ business can use to assist in developing a proactive, customized tax plan for their company. This proactive, customized plan allows the business owner to work directly with a coach to determine ways for the business to save money by optimizing their taxes on a yearly basis based on current tax policies.
Understanding Small Business Tax Benefits
Through the tax coaching process, the business owner can find areas of tax deductions or credits which may have been missed in the past. Self-employed business owners may find they have missed the full benefits of the self-employment tax deduction or may have failed to claim allowable deductions for materials, supplies or even training and professional memberships.
Other common deductions that are missed or not fully appreciated include the deduction of daily operations, including internet and phone, as well as interest deductions on business loans, mileage for business-related travel and even expenses for entertaining customers and vendors.
Avoiding Mistakes
Through tax coaching, which typically is a long-term opportunity for the business owner and the tax coach to meet every few weeks or once a month throughout the year, the business owner also avoids making mistakes. These mistakes can include assuming something can be used as a deduction or a credit and making a business design based on inaccurate information.
The tax coach can also work with any NJ business to build in record keeping, financial management, and effective processes for tracking all expenses and income for the company. Having this in place will make preparing for tax filing simple, efficient, and without the stress of trying to track down transactions months after they occur.
