Saving all the money you can is an important aspect of being a successful home business owner. One area that offers many savings opportunities, but can be complex, is your taxes. Below are some important tips that will help you make the most of the tax deductions that may be available to you.

If you are even the slightest bit overwhelmed by taxes, hire a professional accountant to help you out. Before getting into the ‘do it yourself’ tips, this needs to be said. A professional accountant may be your best friend when it comes to utilizing every tax deduction that is available to you as a home business owner. An accountant can save you countless hours of tax law research and find every opportunity, no matter how small. It may seem like an unneeded expense, and for some it may be, but for many others this is the smart choice to see the most money at tax time.

If you are a ‘do it yourself’ type when it comes to taxes, automate your records and computing with the best software possible. Quality tax software can save you a lot of time when it comes to input and calculations, and many of the applications out there include a layer of deduction checking that may find money saving opportunities that you didn’t notice. In addition, some of the biggest tax software companies offer audit coverage for an additional fee. This can save you many hours and lawyers fees if you are audited.

Keep a record of all of your household bills. Your office is located inside of your home, and because of this, certain percentages of your overall home bills can be deducted as business expenses. These bills can include your utility bills, mortgage, internet bills and even home owner association fees. Make sure you have a way to prove these bills exist; if you are ever audited, the IRS will want to see a paper trail.

Specify one room in your home as your business office. When you have a dedicated home office, you can apply for a home office deduction that is based off of the square footage of the room. This can be a significant deduction, but it can also slightly raise the chances of an audit. Since this is the case, be truthful about the home office space and only take the deduction if you realistically have a room dedicated to business. If it is a multi-use room, it will not qualify.

Before beginning your taxes, research online for possible deductions you may not be considering. There are many people out there that are going through the same situation as you. Many of them are sharing what they have learned on industry-specific forums, in web posts on their blogs, and even in the forums associated with whatever tax software you have chosen. A few hours of research can really pay dividends when it comes to opportunities you may have missed.

As you can see, there are many things you can do to increase the money in your pocket during tax time. Try these tips and research other deduction opportunites, and soon you’ll look forward to tax time instead of dreading it!