I'm often surprised how many small businesses actually overpay their taxes. They neglect to take deductions they're entitled to, or don't know about certain breaks that can help them lower their tax bill. The key to keeping yourself from overlooking key deductions is effective tax planning and record keeping. Many small business owners ignore tax planning, and don't even think about their taxes until they're scheduled to meet with their accountant.
Tax planning is an ongoing process, and good tax advice is a very valuable commodity.
You should review your income and expenses monthly, and meet with your CPA or tax advisor quarterly to analyze how you can take full advantage of the provisions, credits and deductions that are legally available to you. The following are some of the deductions small business owners commonly overlook. Make sure you take advantage of all possible deductions to reduce the amount you owe. If you're like many small business owners, you regularly spend small amounts of cash on things like pens, taxis, coffee with clients, groceries for your office, etc. While these don't seem like large outlays at the time, over the course of a year they add up.