When it comes to running a flooring company, it’s important to make the most of every possible tax deduction to help minimize your tax liability and maximize your profits. However, navigating the complex world of tax deductions can be challenging, especially if you don’t have experience in accounting or finance. That’s why it’s important to work with an experienced accounting firm that can help you identify all of the tax deductions available to your flooring company. In Denver, Colorado, Barta Business Group is the preferred small business accounting firm with a team of experts who can help you navigate the tax code and make the most of your tax deductions. In this ultimate guide, we’ll walk you through everything you need to know about your tax deduction checklist for flooring companies so you can keep more of your hard-earned money in your pocket.
Cost of Goods Sold (COGS)
One of the most significant deductions available to flooring companies is the Cost of Goods Sold (COGS). This includes the cost of materials used for installation, including carpet, tile, hardwood, and any other flooring products. Additionally, any costs associated with labor or subcontractors used for installation can also be included in COGS.
Vehicle Expenses
If you use a vehicle for business purposes, you may be able to deduct the associated expenses, including gas, repairs, and maintenance. Keep track of all business-related mileage to ensure accurate deduction of expenses.
Office Expenses
Expenses related to running your office, such as rent, utilities, office supplies, and equipment, can also be deducted. If you have a dedicated office space, ensure that you keep track of all associated expenses to maximize your deduction.
Advertising and Marketing
Marketing and advertising expenses, such as website design, business cards, flyers, and social media advertising, can be deducted. Keep all receipts and documentation to substantiate the expenses.
Professional Services
Fees paid for professional services, such as legal, accounting, and consulting services, can also be deducted. Keep track of all invoices and receipts to ensure accurate reporting.
Employee Wages and Benefits
Wages paid to employees, including payroll taxes and benefits such as health insurance, can be deducted. Ensure that all necessary documentation, including W-2 and 1099 forms, are accurate and filed on time.
Depreciation
The cost of equipment used for flooring installations can be deducted over time through depreciation. Keep track of all equipment purchases and consult with a tax professional to ensure accurate reporting.
Ready To Talk About Tax Deductions For Your Flooring Company?
Taking advantage of tax deductions is a crucial part of running a successful flooring company. By following this ultimate guide, you can identify all of the tax deductions available to you and ensure that you’re not leaving any money on the table. Working with an experienced accounting firm like Barta Business Group in Denver, Colorado can help you make the most of your tax deductions and keep more of your hard-earned money. If you’re a flooring company looking for tax deduction services, don’t hesitate to contact Barta Business Group today. Their team of experts can help you navigate the tax code and ensure that you’re taking advantage of every possible tax deduction available to your business.