4 Ways You Can Save Money While Running a Home Business

Emma Sturgis

March 25, 2019

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As a business owner operating out of your home, it’s likely that you’re always on the lookout for ways to save money. Unlike working at a large company, you’re completely in charge of how much you spend money. Here are four ideas for saving money you might not have thought of.

Get Business Internet

If you’re accustomed to home internet service, you might not realize you can get faster and more reliable internet service by switching to business internet in Phoenix, AZ. Faster business internet can be less pricey than if you paid for an upgrade to your slow home internet service.

Use Independent Contractors, Not Employees

If you need help with your home business, you can avoid paying for employee insurance and payroll taxes by using independent contractors instead of employees. Independent contractors work for themselves and are responsible for paying their own taxes. Plus, you won’t be locked into paying an extra salary during times when business is too slow to keep an employee busy. You can simply use the independent contractor only when you need the help.

Buy Used Equipment and Furniture

Office equipment and furniture is expensive. You can save a bundle buying used or refurbished equipment like copiers, computers and printers. If you buy used from the manufacturer, you may even be able to get a warranty. Purchase decent office furniture from estate sales or local resale shops. Since you’re home-based, it’s unlikely you’ll have clients visiting so you’ll be able to get away with used furnishings.

Hire an Accountant

It sounds counterintuitive to hire an accountant since that’s actually spending money. But accountants can save home-based business owners thousands of dollars through tax deductions. There are numerous tax deductions available to you that other types of business owners can’t take because they don’t work out of their homes. You won’t want to miss a single deduction. You also don’t want to incorrectly take a deduction and get flagged for an audit. Hiring an accountant is your best move to save money and protect yourself from having to pay IRS penalties.

When you are running a home business, you can save money by getting business internet, using independent contractors, buying used and hiring an accountant for your business taxes. These four things will go a long way toward ensuring that every dollar you spend works toward your business needs.