Put down the gifts. Let’s get ready to wrap up another year in business. These seven end-of-year tax planning tips for small businesses will help you finish strong and set you up for future success!
Get organized now.
Don’t wait until the last minute to organize your records. One way or another, planning ahead and getting prepared before filing time will pay off.
Make time in your schedule throughout the next few days this December to ensure your year-end tax planning is handled.
Review your statements.
Part of your year-end review should include looking over your financial statements.
Not sure what statements we’re referring to? Don’t panic! Read our blog, 3 Financial Reports Every Business Owner Should Know and Understand, to get started.
Make necessary purchases.
The end of the year is a good time to make certain tax-deductible purchases. Consider stocking up on necessary office supplies, equipment, or a company vehicle, for instance.
Know your tax deductions and tax credits.
Do you understand the difference between a tax deduction and a tax credit? Find out here and determine how they apply to your business.
Be sure to check out our blog, 4 Often-Missed Business Deductions at Tax Time, for more helpful tax deduction tips.
Re-evaluate your retirement plan.
This is one of the end-of-year tax planning tips for small businesses that may come as a surprise. However, it’s a good time to consider your options for establishing a retirement plan if your company currently does offer one.
Or, look over your retirement plan and make sure you are headed in the right direction.
Evaluate your accounting processes.
Again, the end of the year is the perfect time to review. This time, we’re referring to your accounting practices.
How you are managing your records? Do you manually enter information on a spreadsheet? Are you using accounting software, working with an accountant, or both?
No matter what your recordkeeping methods are, closely examining them to see if they are working in your best interest is a good idea. Then you can make any needed adjustments for next year.
Work with a tax professional.
There are several benefits to working with a tax professional. Higher tax refunds, lower liabilities, more profitability, more time, and peace of mind are just a few examples.
Not sure where to begin? Talking to an expert (like us!) is a good place to start your tax planning journey!
Last but not least, when it comes to end-of-year tax planning tips for small businesses, stay proactive. Keep your records organized. Book your free consultation with us. Those are just a few ways to start 2023 off with a bang! For more tax tips, keep reading our blogs. Wishing you all a happy, healthy, and prosperous new year!