How can I optimize my year-end financial statements to save on taxes?
July 19, 2024 | 40,00 EUR | answered by Fanni Ehrig
Dear tax advisor,
My name is Anna Hohenadel and I run a small sole proprietorship in the online retail sector. My annual financial statements are due, and I am thinking about how I can optimize them to save on taxes.
In the current situation: My revenue has significantly increased in the last year, and I have also made some investments to further expand my business. However, I am unsure about which expenses I can claim for tax purposes and how I should structure my income to minimize the amount of taxes I have to pay.
My main concern is that I have little experience in optimizing my annual financial statements for tax purposes, and I fear that I could make mistakes that could end up costing me dearly. That's why I am looking for professional advice and support to minimize my tax burden and successfully run my business financially.
My specific question to you as an expert is: What are the options for optimizing my annual financial statements to save on taxes? Which expenses can I deduct for tax purposes, and how can I best structure my income to achieve the best tax benefits? I would greatly appreciate specific tips and recommendations on how I can effectively optimize my annual financial statements.
Thank you in advance for your support.
Sincerely,
Anna Hohenadel
Dear Mrs. Hohenadel,
Thank you for your inquiry regarding the optimization of your annual financial statements to save taxes. As a tax advisor, I would like to give you some tips and recommendations on how you can optimize your tax situation.
First and foremost, it is important that you properly document and record all relevant expenses and income. This is the basis for a correct tax return and will help you take advantage of possible tax benefits. Expenses that you can deduct for tax purposes include business expenses such as office supplies, telephone and internet costs, rent or lease payments for your business premises, advertising costs, insurance premiums, travel expenses, training costs, and more. Depreciation on assets such as computers or office furniture can also be deducted for tax purposes.
Additionally, you can deduct investments in your business for tax purposes. This means that you can depreciate purchases such as new software, technology, or machinery over several years and thus reduce your tax burden. There are also various funding programs and tax incentives for investments that you can take advantage of to save taxes.
To structure your income optimally and achieve tax benefits, I recommend creating regular profit and loss statements and analyzing your revenues and costs precisely. This way, you can identify potential savings early on and take targeted measures to minimize your tax burden. Additionally, you should consider whether it is beneficial to convert your business into a different legal form to achieve tax benefits. A tax advisor can help you with this and develop individual solutions for your tax optimization.
I hope these tips help you optimize your annual financial statements and save taxes. I am available for further questions and personal consultation.
Best regards,
Fanni Ehrig, Tax Advisor
