Businesses and individuals begrudgingly pay interest, because it appears little is to be gained. This is not entirely true. Interest expense, in certain cases, is tax-deductible.
The beginning of the year is the time for business owners to double and triple check that they’ve used all of the business tax deductions that are available to them. Documentation is important for everyone, but especially so for business owners, who often authorize employees to make purchases on behalf of the company. For that reason, it’s important to keep all relevant receipts from all business expenses, so that you have them to refer to throughout your business tax planning process. Additionally, business owners should maintain a log of their expenses, with explanations of why certain list items are business-related, which allows them to be tax deductible.