With the fall season closing in, it won’t be long before the end of the year is here. Rather than save all tax related questions, concerns, and responsibilities
for December and January, now is the time to review your situation.
Below are four fall tax tips for small business owners to consider and ask their tax professional about:
- Spend money. Time is running out in 2016, so don’t shy away from spending money on your business to maximize deductions. Do you need to upgrade your equipment? Is it time to spend more on advertising? Can you make vendor payments now, as opposed to waiting until the new year? If you can buy it in 2016, you might as well do so.
- Get organized. You may have plenty of time right now, but you know how busy things can get when the holiday season arrives and the end of the year begins to close in. By getting organized now, you can avoid a hectic situation in the future. From gathering receipts to running reports, there are things you can do well in advance of the new year.
- Gather Deductions. Remember that things like business entertainment, travel and home office expenses can be deducted. Did you take a client out for dinner or lunch recently and discuss business? You may be able to deduct it.
- Plan on ways to decrease revenue in December (and maybe even November). This sounds crazy, as every company shares the goal of increasing revenue month over month. However, if you can defer payments from December to January, you can effectively reduce your 2016 tax bill.
You don’t have to follow these tax tips in September. You may not even get around to it in October. But remember, the end of the year is coming soon and you will eventually run out of time to improve your tax situation.
As a small business owner, one or more of these tips may help reduce your tax bill for the current year.
Do you have any other tips to share?