There are endless advantages available to digital marketers who have their taxes prepared and filed by tax professionals. Just as it would be better to hire a professional in the digital marketing realm to handle online publicity campaigns, the advantages are linked to experience and skill levels. With a vast amount of experience under their belt, the tax professional can see exactly where deductions can be applied to lowering your costs.
You will need to be knowledgeable about the tax rules in your country and they can differ. Read more about the UAE VAT.
Following are a few of our top tips for digital marketers looking to save big this tax season.
The Potential to Save
Businesses looking to have their taxes reviewed and processed by professionals have a wealth of options open to them today. The first is the easy access to a wide range of tax professionals who specialize in digital marketing companies and know exactly how to save cash on taxes. Some of the methods tax professionals apply to digital marketing includes identifying all possible deductions, factoring in self-employment taxes, leveraging tax credits, filing returns, tax planning and more.
Deductions for Digital Marketers
One of the most important things a digital marketer should know is which deductions apply to your business. A tax deductible is any expense that qualifies to be deducted from your taxable income. Knowing how these work and the total deductions that apply to your business can end up saving your thousands on taxes. You may find that many of your regular activities and expenses fall into this category.
Some expenses you probably face in your business that can be reduced from your taxable income include: continued education, travel, marketing, software developments, business subscriptions, website development and several others. If you would like to know more about hiring a suitable tax professional to help with your digital marketing business when it comes time to pay taxes, see our previous post on the many benefits of tax professionals for the digital markets.
Tax credits can sometimes be confused with tax deductions probably because they both reduce the costs or liability of taxes. Nevertheless, there are some important differences in the way they are awarded. Deductibles work to lower the amount of taxable income, whereas tax credits affect the tax liability. This went into effect back in 1981 and was used to help some tech companies reduce the costs of research and development.
Several decades later and mostly because of the rapid advance of your technological age many businesses including digital marketers are able to use this to their benefit. One example of research and development (R& D) tax credit can be used for reducing your tax costs is when developing software. This can include CRM software, or software used to monitor, track and update the marketing campaigns you manage. If you would like to know more about qualifying for R& D tax credit you will want to talk with your tax professional who specializes in digital marketing.
When handing a digital marketing campaign there will be various different aspects to address including managing backlinks or content writing. It is often a good idea to have the tasks assigned to various specialists who can ensure the client gets what they hoped for.
Self-Employment Taxes – Estimated Taxes
As a limited liability company (LLC) or a self-employed professional, you need to know how self-employment taxes apply to your business. NI and income taxes are included here. Getting all these factors correct is important to a properly filed tax return and a tax professional can help you get it done right and on time.
Preparing and Filing
The particulars of a tax process can be tedious and confusing for all but the well-experienced, which is why having them handled by a professional will ensure they done right every time. The importance of timeliness and precision can’t be underestimated here. The whole thing could take you a couple days to complete and check for all possible errors, where as your handy tax professional can do this in a far shorter time frame. This will allow you to place your skills and time where they are best applied.
Perhaps the greatest thing about working with a tax professional, is the greatly reduced risk of audit. While an audit is always a potential issue, the chances of this happening are reduced through the work of an experienced professional. If an audit does occur, you will have a professional present to speak for their work. And all that meticulous record keeping will greatly reduce the potential for any future problems.
Tax planning under the supervision of a professional can help pave the way for a successful business in the future. Tax planning ensures that income and expense are synchronized properly and can have implications for future retirement and investment plans as well.