Some typical expenses you can deduct for your business are:

1. Office expenses (rent, utilities, and supplies)
2. Salaries or wages
3. Inventory
4. Marketing expenses
5. Business travel expenses
6. Insurance

We recommend that you consult with a tax professional to determine which expenses are able to be deducted.

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Outsourcing your accounting can provide a range of benefits such as:

1. Flexibility: The services can be customized to meet the needs of your business, and can be easily scaled to meet demand.
2. Cost savings: Outsourcing your accounting can be more cost effective than hiring an in-house accountant or a bookkeeper.
3. Saved time: Free up your time to focus on other business aspects than the finances.
4. Compliance: They work to ensure you are staying compliant with the IRS, and avoid all penalties.

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When deciding between hiring employees or independent contractors, it's important to weigh factors such as control, cost, legal obligations, and duration of work.

The factors you should think about are:

• Cost: Independent contractors can be less expensive as you don't need to pay for benefits, payroll taxes, and other expenses like you would with hiring employees.
• Duration of work: If it is a project based work, independent contractors may be a better option. However if the work is ongoing, then employees are better.
• Legal obligations: Hiring employees has legal implications with taxes and employment laws, unlike hiring independent contractors.

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There are multiple ways to maximize all your tax deductions:

1. Accurate record keeping: Maintaining accurate records of all business expenses is crucial as it helps to provide proof of payment and the expenses that can be deducted on taxes.
2. Claim all applicable deductions: It's important to review the IRS guidelines for business expenses and make sure you are claiming all applicable deductions. Some common deductions to consider include rent, utilities, insurance, travel expenses, and office supplies.
3. Maximize retirement contributions: It is recommended that you contribute the maximum amount allowed to your business retirement plan, such as a 401(k) or SEP IRA, to both invest in your future and take advantage of tax deductions.

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A tax deduction reduces your taxable income, while a tax credit directly reduces the amount of tax you owe.

Example of a tax deduction: You make $50,000 a year, and you gave a $1,000 gift to a charity, you would only be taxes on $49,000.

Example of a tax credit: You owe $5,000 to the IRS at the end of the year, if you have a $1,500 tax credit, you would take of $1,500 off of your total.

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