As a sewer, septic tank or portable restroom contractor, you have a lot on your plate. The management of staff, equipment, clients and several other things is not an easy feat. Also, no matter how astute you are, it is impossible to predict all the expenses your business will have in a year. However, by diligently tracking and recording certain expenses, it is possible to save big on taxes in 2024. Let’s dig into some of these expenses.
Equipment Costs and Depreciation
As a sewer and septic tank contractor, you work with specialized equipment such as sewer jetters and inversion machines. For these machines to work effectively, they need to be properly maintained. As a result, it is important to monitor the costs incurred in their maintenance. A good record of these expenses can qualify you for significant tax deductions. These deductions can become even bigger when the depreciation of these pieces of equipment is also factored in.
Employee Benefits
As a good entrepreneur, you must ensure that the work environment of your company is harmonious and conducive. One way to do this is through employee benefits. Employee benefits such as health insurance, retirement plans and education assistance can help encourage your staff and improve overall job satisfaction. Not only that, but the costs incurred from these benefits are tax deductible. So, it is a win-win situation for you and your business.
Marketing and Advertising
Marketing and advertising can be unpredictable and easily incur unexpected expenses. However, it is vital to the growth and development of your septic, sewer and portable restroom business. You need to invest in publicizing what you do and the benefits of working with you.
However, did you know that marketing and advertising costs are tax deductible? Yes, the costs of website development, social media campaigns and printing materials can be calculated as business expenses. The expenses are qualified for tax deductions.
Vehicle Expenses
Your vehicles are essential to the provision of services to your clients. They aid in the transportation of your staff and your equipment to the work site. Some of your equipment even has to be coupled with them to work effectively. Consequently, you have to spend on your vehicles. This ensures that they continue to run smoothly. Sounds like a hassle, right?
The good news is that the expenses incurred in the usage and maintenance of your vehicles are tax deductible. As a result, you need to monitor and keep good records of mileage, fuel expenses and maintenance costs. The principle of depreciation can also be used here to bring about further tax deductions.
Legal and Professional Consultation Fees
To conduct business safely and successfully, you need the input of other professionals. From time to time, you might need to seek consultations from attorneys, accountants, auditors and the like. Sometimes, the need for these consultations can be unexpected, and the fees can be costly. However, they are important to ensure that your company continues to move forward.
The funds spent on consultation fees are tax deductible. This would save you a significant amount in taxes. As such, diligent records of this should be kept.
Safety and Training
Although the sewer and septic tank industry is not the most dangerous in the world, it is not without risks. Every working day, you and your staff are exposed to hazards, be they chemical, physical or biological. Therefore, it is of utmost importance that you invest in materials and systems that protect your staff from these hazards. It is also important to organize training programs that help your staff spot these hazards and effectively avoid them. As an added incentive to your management, the costs of these are tax deductible — so don’t scrimp on them.
Travel Expenses
Sometimes, you or members of your staff would have to travel, either to do a job or to attend an industry event. Although travel can be expensive or regarded as a luxury, it is important for the advancement of a business. Successful completion of a job you have to travel for widens the range of your business coverage. Attending an industry event helps sharpen your skills and improve your network. Travel expenses are also tax deductible, so keeping a proper record of them can lead to significant tax deductions.
The American Liquid Waste magazine is a publication that keeps septic, sewer and portable restroom contractors up to date about events in the industry and best practices that can move their business forward. Subscribe today to stay informed about the liquid waste industry.