Whether you are an established owner of a flooring company or are just in the beginning stages of running your business, saving money and spending it wisely matters. Tax season is synonymous with owing money, however, if you are a business owner, one of the perks of tax season is that you have a lot of tax deductions at your fingertips which can help you to save in the long run. At Barta Busines Group, an accounting and bookkeeping firm for small businesses, we have put together a list of tax deductions for flooring contractors that you need to take advantage of.

Tax Deductions for Flooring Companies: What You Need To Know

With the helpful insight of Barta Business Group, providers of small business accounting services in Denver, we can look at tax strategies for flooring companies. This way you can save the most money on your taxes, potentially saving thousands of dollars from going out the door. 

For example, section 179 lets hardwood flooring companies get big tax breaks for making large purchases such as heavy equipment and vehicles intended for business use. However, smaller operating expenses can really add up to give you significant breaks on your taxes as well. 

Let’s look at what those look like.

Travel Expenses

Travel expenses are enormous for companies because you are more than likely going to be traveling to different residences and facilities to do your work. Luckily, you can deduct the number of miles you travel for business purposes. 

If you also use your truck, van, or car for personal purposes, you can deduct the percentage of miles that you use for your business. If you haven’t been logging miles for this past year, then do so right away for taxes next year. 

In addition, you can also deduct most travel, lodging, food, and entertainment costs related to business trips you take, like overnight trips. Travel expenses can add up, so take advantage of all tax breaks. 

You can also deduct the parking fees or tolls that you incur from traveling to your clients. 

Lastly you can deduct maintenance costs, insurance registration, and other expenses associated with your vehicle in proportion to the percentage you use the vehicle for work.

Office and Accounting Expenses

Write off your phone bill if you have a line dedicated solely to your business, or the percentage of your regular phone bill that is used for business purposes. 

You can also deduct general office expenses, like the supplies you need for running your business on a day-to-day basis. These deductions can really add up. 

There are also deductions for ATM fees, card fees, and interest payments on the debit and credit cards you use for business transactions.

If there are insurance costs associated with your business, such as liability insurance, you might be able to write off your premiums. 

The domain name and web hosting charges can also be written off, which gives you another reason to market your contracting business online if you haven’t started yet. You can also deduct the costs you incur for business advertising.

Employee Expenses

If you have a retirement plan set up for yourself and/or your employees, you might be able to deduct your contributions to these plans. 

You also may be able to deduct costs for educational programs that you enrolled in last year to improve your skills.

Final Tips: Tax Deductions for Flooring Companies

If you want to take full advantage of tax deductions available than keeping records of your business, the transaction is a must. If you fell behind on your record-keeping last year, then keep your records updated this year to make the most out of next year’s tax breaks. 

There is software out there that can help with this. Programs such as Xero and QuickBooks can import your transactions and help you sort them into business and personal categories. This kind of software can also help you file your quarterly taxes and estimate your upcoming tax payments so you don’t get hit with any surprises. With that, you can also write off the subscription fees or payments you make for the software as business expenses.

About Barta Business Group

Most businesses are great at their craft, but not great at the financial back of the house. Our team of bookkeeping, accounting, and finance professionals guides business owners in making better decisions, so they can focus on doing what they love in their business. We understand the peace of mind that comes from knowing your financial information is done right every time. We value being able to support businesses in turning financial data into actionable insights, so you may plot a course for your company’s future with confidence.