Do you know what to do to lower your taxable income when operating your own company? This article highlights the top seven things you should know.

1. Calculate Your Gross Income.
   Determine how much you will need to pay in taxes by figuring out your income before taxes.
   If your business is not taxed as an "S" or "C" corporation then you will need to remit quarterly self-employment taxes.
   Give your best estimate of earnings so that you do not underpay taxes or incur under-payment penalties.
   
2. Review your previous tax return.
   Did your income increase this year? With the constantly changing tax code, it is possible that some items that were available at the lower tax bracket may not apply now.
   Be sure to review last year's return to see what changes to factor in your planning.
   
3. Take the credits that are available.
   Keep an eye out for tax credits and changes in income tax law that apply to business owners.
   Take advantage of what is legally available but make sure that you understand if you qualify and how to apply.
   
4. Use tax-deferred savings.
   Tax-deferred savings is a great way to lower your taxable income while building your cash reserves.
   Most people use this to contribute to retirement savings that accumulate interest until you withdraw them or reach the age of retirement, whichever comes first.
   
5. Plan for business expenses.
   One goal in business is to pay the least tax possible.
   A great way to achieve this is through planning the timing of business cash flows.
   For example, good financial management is not spending for the sake of it.
   A better approach considers how using funds today can impact taxable income in the future.
   
6. Non-cash tax write-offs.
   Two areas that will maximize your tax results include mileage and contributions.
   Keep good records by logging in mileage that you incur in the course of business.
   Many self-employed business owners miss out on this deduction by using the standard mileage.
   You may be surprised to find how much more you can deduct when you keep track and use the actual miles and expenses instead.
   
7. Keep good records.
   Inconsistent record keeping can cause you to pay more in taxes than you should.
   Get a good accounting system in place to capture the daily activities that impact your taxes.
   A few ways that self-employed persons can improve record-keeping results are online banking to automate part of the process and outsourced accounting to help you stay on task.
   

Tax laws are constantly changing and impacting the results of your bottom line.
To learn how to pay fewer taxes on your earnings visit http://www.
tbsusa.
comfor tax help and resources.