3 Year End Tax Tips For Small Businesses
It’s that time of year again. Time to review the past year and identify strategies that worked and the ones that didn’t.. A time to start forecasting for the future, referring to actuals for reasonable budget estimates. A time to cash flow annual employee bonuses. Yes folks, it’s year end. These are things most business owners are thinking about as December 31st or fiscal year end approaches. But one thing that’s often overlooked is what needs to be done to optimize the company’s position when it comes time to file the tax returns. We’ve put together a list of three year end tax tips to help you get your financial house in order ahead of tax season. Let’s dive in! Year End Tax Tip #1 Don’t Skip Meeting With Your Accountant If you do nothing else, set up a meeting with your accountant to discuss tax strategies before year end. Why? Because with a little forecasting and tax planning, you could save your company thousands of tax dollars (and penalty payments), and you can do some cash planning to avoid a crunch in Q1. Tax Deductions Your accountant is up to date on all the current tax laws, including ones that allow certain advantageous deductions of which you may not be aware. Know what your options are if you’re planning to buy equipment in the next few months. It may make sense to purchase it before year end and take the depreciation, or it may make sense to wait until…