In honor of Tax Day, which was yesterday, April 15, 99designs released a report on April 14 detailing the deductions small businesses and entrepreneurs were missing out on. Among them is a marketing deduction, which allows small- to medium-size businesses (SMBs) to write off the cost of marketing their businesses. More than a quarter, at 27 percent, are not aware that the IRS will let them deduct certain marketing expenses, according to an article published yesterday, April 15 on MarketingProfs.
Meanwhile, out of the 73 percent of small business owners who know about the marketing expense deduction, only a little more than half, 57 percent, are actually claiming it on their 2013 tax returns. And nearly two-thirds of these surveyed small business owners aren't deducting any more than last year: just 64 percent are claiming more in marketing expenses than 2012, while less than a quarter, 22 percent, are deducting more.
The report details several deductions that small business owners may have missed in the rush to prepare their taxes. Here are a few that can be noted for and used next year, after consulting your qualified tax professional, of course.
SMBs plan to spend more on marketing
The majority of SMBs plan to spend more on marketing in 2014 than they did in 2013, at 40 percent. Almost a quarter, 24 percent, were unsure if their marketing spend would rise this year.
SMBs consider marketing a good investment
Unlike the Madoff Ponzi scheme (director of operations Daniel Bonventre is shown here), the majority of SMBs consider marketing a worthwhile investment, at 70 percent. Only 7 percent do not consider marketing a worthwhile investment, and they are probably the ones who have designed their own logos and write their own website copy.
SMBs want to beef up their websites
Almost a third of SMBs surveyed, 32 percent, would spend a $500 tax refund on enhancing their websites. Meanwhile, 17 percent would put that tax refund toward online ads, 14 percent would invest in a mobile app, and 10 percent would spring for some print ads. Eight percent would be interested in using a tax refund for social media, 7 percent on business cards, 7 percent on email templates, and 5 percent on their logos.