Many people in today’s society are opting to work from a home office. Continued increases in the cost of living, including rising gas prices, daycare costs and a desire to navigate away from the stresses of a busy workplace are all viable reasons people have for making this transition.
If you are considering taking the plunge, and opening a home business, here are some of the important advantages you will be able to enjoy.
Working out of the home can certainly cause stresses of its own. However, leaving behind corporate office stresses, such as answering to someone above you, deadlines, office politics and the fear of layoffs can lower your stress level, and eliminate many of the disadvantages of working in the outside business world.
Owning a Business of Your Own
There is a real satisfaction in owning your own business. You have only yourself to answer to. You make the decisions, create your own schedule and are able to spend some extra time with your family as well. You can make your business as small, or as large, as you want, and be your own boss.
Perks For Women
If you are a woman with children, it can be difficult to go back into the workforce, leaving a baby, or young child with a sitter, or a daycare facility. Not to mention the rising cost of daycare, which takes a major chunk out of your paycheck. Missing out on the joys of young motherhood is often enough to convince a woman to consider opening a small business at home.
If you are considering a home-based business, you may wary of the higher cost of self-employment tax, but if you are smart, and well-organized, you can maximize your tax deductions in order to offset your self-employment tax. For instance, many home business owners do not realize that their home office space can be written off at tax time. Whatever space in your owned, or rented home that is used exclusively for your business is allowable as a tax write-off. Other expenses that qualify include: utilities, such as electricity, telephone and heat. These can add up to significant savings.
Office Supplies and Furniture
If you are well-organized, you can write off your office supplies and office furniture. Keeping, and filing, every receipt for purchases you make, including paper, pens, staplers etc. can all add up to savings for you. Office furniture can be deducted at full cost during the year it is purchased, or depreciated over seven years.
You will most likely make use of a computer, printer, cell phone and other technology in your home business. As long as these items are used exclusively for your business, they can be written off as a tax deduction, and replaced as needed.
The advantages of owning a home-based business are many, as you can see. By hiring a good accountant, or tax preparer to guide you, you can maximize your savings, and give your business a real financial boost when tax season rolls around!