How We Saved an Small business 10,000 Euros with Smart Tax Advice

As an accountant, I often get asked, “What can you really do for my business?” The answer lies in the details – and in spotting opportunities others might miss. Let me share a recent example of how we helped a small or medium enterprise (SME) save 10,000 euros with a few clever tax strategies.

The Situation: A Growing Business with a Blind Spot

Our client – let’s call him Peter – runs a thriving installation company. He’d had a strong year: more revenue, a few new hires, and even a new van purchased for his jobs. But when he showed us his numbers, we noticed something. Peter was paying more tax than necessary because he wasn’t fully leveraging the tax benefits available to him.

Step 1: Making Investments Work Smarter

Peter had paid cash for that new van – a hefty 25,000-euro expense. What he didn’t realize was that he qualified for the Small-Scale Investment Deduction (KIA). For investments in business assets between 2,400 and 350,000 euros (in 2025), you can deduct a percentage of that amount from your taxable profits. In his case, this netted him a tax saving of about 4,000 euros. A simple check he’d never have found on his own.

Step 2: Uncovering Hidden Deductions

Next, we dug deeper into his records. Peter had set up a home office for his admin work but hadn’t claimed the costs (like a desk and laptop). By smartly applying the rules for a home workspace and related expenses, we secured another 1,500 euros in deductions. Small amounts, sure, but they add up!

Step 3: Future-Proofing with Pension Contributions

Peter was about to pay himself a chunk of his profits as a bonus. A solid plan, but not before we looked at his pension contribution allowance. By putting some of his income into a tax-deductible pension product, he could claim up to 15,000 euros (depending on his income and pension gap) in 2025. For Peter, a 12,500-euro contribution saved him 4,500 euros in taxes, as that amount didn’t count as immediate income. Smart for now and his future.

The Result: 10,000 Euros Back in His Pocket

With these three tweaks – investment deductions, overlooked write-offs, and pension contributions – we saved Peter a total of 10,000 euros in taxes. Money he can now reinvest in his business, hire an extra hand, or take a well-earned break. The best part? This took us just a few hours because we know the rules and where to look.

What This Means for You

You might be thinking, “Great story, but I’m not an installer.” That’s fine. Whether you run an online shop, work in construction, or own a consultancy, there are almost always ways to handle your finances more efficiently. The key is having an accountant who doesn’t just file your paperwork but proactively works with you.

Feel like there’s more to squeeze out of your numbers? Let’s talk. Who knows how many euros are waiting to be saved for you.

5 Common Accounting Mistakes and How to Avoid Them

Running a business involves many tasks, but managing your finances is crucial. Many entrepreneurs make common accounting mistakes that can lead to financial or legal issues. Here are five frequent errors and how to avoid them:

1. Not Keeping Proper Records
   Failing to maintain accurate financial records makes tracking expenses, profits, and taxes difficult.
   Tip: Use accounting software or hire a professional to stay organized.

2. Mixing Personal and Business Finances
   Combining personal and business finances leads to confusion during tax time and financial assessments.
   Tip: Keep separate bank accounts and credit cards for personal and business expenses.

3. Ignoring Cash Flow Management
   Poor cash flow management can result in missed payments and financial difficulties.
   Tip: Regularly track your cash flow to avoid running into cash shortages.

4. Not Understanding Tax Deductions
   Missing out on tax deductions can cost you money.
   Tip: Familiarize yourself with relevant tax laws and consult a professional to maximize deductions.

5. Procrastinating on Financial Reports
   Delaying financial reporting can lead to surprises during tax filing or loan applications.
   Tip: Set aside time to regularly review financial reports to stay on top of your business’s health.

By avoiding these common mistakes, you can save time, money, and avoid financial stress. Stay proactive with your business’s finances to set yourself up for success.