Small business owners pay much in taxes during the course of a year, and if you find out that you're going to get a return, that's an added bonus. This April, you discovered you paid too much, and now you're getting a return. The real question is what you should do with that return to help your business.
There are a number of ways to invest money back into your business when you have an unexpected windfall. Here are three good ideas for things to do to help you grow your business, invest and make good financial decisions with your tax return.
1. Invest in yourself
Yes, investing in yourself is a real benefit. You run your business, and you're your main employee. It's a good idea to keep up-to-date on your training and education, to join professional organizations and to participate in conferences that add to your knowledge of your industry. For example, if you're an artist, investing in a course on digital design, paying for high-end software or heading to a social networking event can all help your business grow in the long term.
2. Pay for marketing content
Another good way to invest a tax return into your business is to market yourself. On social media, for example, you may pay $5, $10 or more to run an add that thousands of people see. Exposure helps your business grow. As an added bonus, you normally can reduce your tax liability next year by claiming marketing expenses as a business expense.
3. Consider charity
Charity might seem to some like a waste of money, but you can potentially take a deduction on next year's taxes by donating money to a deserving cause. Another good reason to do this is for marketing your business. The more you make yourself seen, the better. Participate in events, sponsor an event or work with community organizations. You should find that the community supports those businesses that are involved with it, which is a good way to get your brand noticed. Best of all, your funds help those who need investments blossom, whether it's a donation for research or one for sponsoring community children in need.
These are just a few ideas of things you can do with a tax return. Your attorney can help you look into a number of options for keeping your tax liability low next year while investing in your business's future.
Source: Nov. 30, -0001