10 Tax Tips to Reduce Costs and Increase Income
No one likes paying tax. Everyone understands that tax is a necessary evil and that without it our government would not be able to afford our roads, health services, education, welfare system etc. However you are not obliged to pay more tax than that for which you are legally liable.
Here are some tips to keep your tax down:
Never carry excess stock because that is money that is sitting on the shelves and not in your bank.
Clear stocks and turn them into cash. If necessary reduce your prices and turn stock into cash rather than have it sitting on the shelves or in the warehouse. Best to cut your losses and use the cash to buy in stock that does sell.
Cut your rental cost by letting out or letting go space that are excess to your requirements. Talk to your landlord about what you can do. It may be that you can obtain approval to rent out areas that you don't need.
Do not pay your bills too early because having the money sitting in your bank will reduce your bank fees and interest costs. Make use of any early payment discounts offered and, where necessary, if the funds are short talk to your suppliers and see if they would allow you extra time to pay.
The correct profit margin you put on to your products is critical and will determine whether you will be profitable or not.
Credit cards often have an interest-free period so make use of it. Advantage can be taken of this fact by using your card to pay some expenses and then paying the credit card on the due date. The result is that you effectively obtain an interest-free period through the use of this facility.
Check your product range and discontinue all slow moving stock that is not generating profit. It is far wiser turning poor products into ready cash and using that cash for those products which provide a profit contribution.
No customers mean no business. Your customers are critical to your success, so look after them. Satisfied customers will keep coming back to buy. Unhappy ones will never be seen again. When they stop coming back, sales will be lost and your business will suffer.
Don't sell on credit unless you have to. Provide credit to customers who are regulars and who support the business all the time. Give credit to those who pay their bills on time. Late payers should be dropped as the costs of servicing them will drain your profits.
Remember papers are "worth more than money". Keep a record of all claims you make and all receipts to justify those claims. It is very important for you to write/record in your working papers the basis or reasoning or viewpoint relating to every claim you make. If your basis is sound but wrong then you will have a better chance to resist any claim for tax avoidance or evasion directed at you. If you have no basis at all and no thought given to how you arrived at the claim made, and your claim is rejected, you could be up for the "high jump" and be charged with the intention to evade tax.
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 KOMO News | Wash. lawmakers: Tax compromise could be possible BusinessWeek Legislative leaders were more optimistic Thursday that compromise might be possible on an $800 million tax package to help bridge ... Lawmakers back, still stuck on taxes Republican lawmakers frustrated at slow pace of special session |
Tax officials find bonanza of offshore income Globe and Mail 19, 2010 9:50AM EDT Crunch time for tax filers is still weeks away, but Canada Revenue Agency can already boast that it has unearthed six times more ... This could be the year for a nice, big refund from Ottawa |
Credit Suisse clients, staff face German tax probe Reuters DUESSELDORF, Germany, March 19 (Reuters) - German prosecutors have launched 1100 tax evasion probes against clients of Swiss bank Credit Suisse (CSGN. ... |
 Global Toronto | 4.5% property tax hike proposed for Regina CBC.ca (CBC) The City of Regina portion of property taxes could go up 4.5 per cent, a budget proposal released Friday says. That's the amount the city says it ... Regina residents facing biggest tax hike since Mayor Pat Fiacco took office |
Mayors fear province will create new tax for TransLink Globe and Mail Mr. Trasolini said provincial representatives have been saying for years that they believed the region could put more into transit costs from property taxes ... Bond, mayors head talk TransLink |
 The Guardian (blog) | Mandelson denies post-election tax rises planned BBC News Lord Mandelson has sparked speculation Labour will put taxes up again if they win the election after saying economic conditions could make it "necessary". ... Labour warns of more tax rises next year Mandelson opens door to more tax rises We may raise taxes, says Lord Mandelson |
Regional District taxes on the way up Canada.com Tax increases are definitely on the way for property owners throughout in the Comox Valley. ... |
No tax increase, but schools would take a hit in latest Kansas budget plan Kansas City Star TOPEKA | The House Appropriations Committee passed a $5.1 billion budget proposal Thursday that includes no tax increases and would ... Kansas legislators push budget, stall on taxes House Leaders Say No New Taxes Kansas tax panel offers balanced budget, no new taxes |
 NY1 | Daw: Americans in Canada eligible for US tax refunds Toronto Star Filing a 2009 US income tax return by June 15 could qualify you to collect up to $400 from Uncle Sam. If you have a spouse with a US social security number ... Tax Tip: 10 facts about claiming the Child Tax Credit Income tax deadline looms in April Receive an IRS income tax credit for 2009 and reduce your taxes – IRS income ... |
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