SME Toolkit www.smetoolkit.org
Does Spending More on Business Mean You'll Pay Less Taxes?
Provided by Visa, Content Partner for the SME Toolkit
Looking for ways to save money? Have you considered any of these?
- Earn points from loyalty programs.
Credit card companies (whether issuer or merchant accounts) commonly offer discounts and bonuses based on customer loyalty. This may include frequent flyer miles, discounts on hotels and rent-a-cars, and program points redeemable for office supplies or other merchandise.
- Save on postage and delivery.
If you are concerned that you won't be able to email large files as attachments, check out services such as YouSendIt.com and MailBigFile.com. Concerned that you must use the mail in order to get signed documentation? Digital and emailed contracts are binding as long as the recipient provides some sort of electronic signature (which can be as informal as simply typing your name).
- Keep down office supplies costs.
If you have considered the obvious cost-cutting concepts—buying reconditioned equipment, shopping in bulk at box stores, purchasing used merchandise at eBay, uBid, Yahoo Auctions, or Amazon—then look towards the less obvious culprit—employee theft. Lock up supplies if necessary or develop a sign-out system.
- Cut your long distance and telephone charges.
Look into Internet telephone services such as Skype or Vonage that allow you to communicate nationally and internationally at a fraction of normal telephone rates.
- Join something.
Trade and industry associations offer many cost-saving deals from rental cars to office supplies to insurance. In addition these organizations may provide you with information regarding inventory and profit ratios within your industry—an important way to track your success.
- Tradeoffs. Many businesses look to make trades or barters to save money.
A local theater may trade free tickets for discounts from its coffee supplier. A computer tech and a lawyer swap services. Two businesses may swap promotional mailing lists or may barter for supplies. National bartering networks also exist for small businesses but research them before joining. (Several have been investigated for fraud.) You must report bartered goods as income. The good news: your tax liability—particularly if you do a lot of bartering—is lower since the fair market value of bartered goods is usually less.
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