Roofing contractors know that tax time can be super stressful. If you’re worried about getting a big tax bill you can’t cover, we have good news. There are lots of ways Tennessee roofers can save on their taxes, especially if they plan ahead and stay organized.
Here are our top 9 tax-saving tips for your roofing business.
If you’re a roofing contractor, you don’t want to wait until the day before you file your taxes to start thinking about them. There are little things you can do every day that will add up to big savings at tax time.
Your first step in saving as much money on your taxes as possible is to not try handling them yourself. After all, you wouldn’t advise a CPA to try to put a roof on his house, right?
By tasking your accounting needs to professionals, you can be sure you’re getting every penny of savings possible. You can also be confident everything is accurate and legal. Working with a professional CPA is better than a sleeping pill to help you rest peacefully at night.
Knowing what you CAN’T write off is just as important as knowing what you can. Unfortunately, many roofing contractors assume they can use certain expenses and purchases as deductions that are actually nondeductible. These errors can cost you big at tax time.
It’s so much easier to jot down expenses and purchases as they occur than try to re-create a year’s worth of them right before tax time. Add an app on your phone, carry a shoebox in your truck for receipts, or log potential deductions into a spreadsheet once a week. Trust us, the effort will save you money down the road.
Whether you have employees on staff or use subcontractors here and there, these costs can offer big tax savings. While most roofers remember to count their employees, it’s easy to forget paying a subcontractor you hired to help with a large job or handle your overflow during the busy season. Keep good records of your payroll for every staff member, freelancer, and subcontractor you pay.
Related: Choosing a CPA Firm for Your Roofing Business? Ask These 10 Questions Before You Hire Them
When it’s time to handle your taxes, you need to be prepared with the information you’ve collected all year. You also need to consider ways to save every dime you can on your tax bill. These tips will help.
If you’re throwing receipts in your dash or a shoebox, the method is better than not keeping up with them at all. However, those paper-heavy practices leave a lot to be desired. It’s easy to lose or misplace records that could save you hundreds of dollars on your taxes.
You can invest in a software system or an app on your phone that makes the process much more effective and simple.
Don’t be shy about using the write-offs you’ve accumulated during the previous year. Include every business mile, toll, parking fee, and equipment purchase you’ve made. Don’t forget lesser-known deductions like attorney and CPA fees, membership dues, and any class tuition fees you’ve paid during the year.
Related: 25 Tax Deductions for Tradesmen and Contractors That Can Save You Money All Year Long
There are several tax credits roofers may be eligible for. One of the most common ones is related to going green. If you’ve bought energy-saving equipment or electric work vehicles, you probably have a healthy tax credit coming your way.
You may be able to depreciate any equipment (whether on-the-job or in the office) and vehicles you use in your roofing business. Give your CPA a list of these and they will be able to advise you on how to use depreciation to decrease your tax bill.
Our final tip is: Don’t procrastinate at tax time. Sticking your head in the sand won’t help you save money. It may even cause you to miss important deadlines and end up owing costly fines. Start gathering your tax information several weeks early and plan to address your taxes well before the deadline.
There’s not a Tennessee roofing contractor out there that looks forward to tax season. But it doesn’t have to be a stressful time to dread every year, either. With some organization on the front end and an understanding of deductions, tax credits, and depreciation, you can save big.
Busy roofing contractors don’t have time to handle their own accounting needs. You’re too busy running your business! Our licensed CPAs understand your business. We can take care of your accounting needs so you can be confident you’re not paying a penny more than you should. This peace of mind lets you focus on what you do best…growing your business and servicing your customers. Schedule a consultation with us today to hear how we can help your business with all its accounting needs.