Many business owners are quite contempt in letting the year come to a close without looking into last minute ways in which they can save in taxes. They are busy this time of year, probably in the midst of holiday shopping for employees and vendors, setting goals for next year and closing out the books for this calendar year. The fact is right now is the best time to consult a small business accounting service in Greeley to ensure your business ends the year fiscally healthy. There are a few small changes that can make a big difference in your total income and tax liability this year.
Any income received by December 31 counts as income for the current year. Shifting some of this income to after January 1 delays it from being counted until next year. Depending on your situation, it might make sense to defer December payments until after the new year to cut your tax bill.
It is vital that your books are up-to-date and accurate. If you don’t have an accounting service, you need to get on the ball and have everything in tip-top shape. If you do have an accountant, they will have all reports run and schedule a time that you can walk through them together so you fully understand what is going on.
If your business needs anything, now is the time to spend money on those purchases. You might need equipment upgraded or need to add a vehicle or two to the fleet, now is the time to make those purchases so you can maximize your deductions. Every bit helps, so even if you simply stock up on office supplies or pay vendors in advance, it is worth the expense.
If there has been a market value drop of your inventory, you might be able to take additional deductions. Check with your accountant to see if this makes sense for your business.
Making charitable contributions is a noble thing for a small business to do, especially over the holiday season. And it can also be a great idea for business finances. Even if donating money is out of the question, items like toys, clothing and other goods can be donated and claimed as deductions. Just make sure you keep all receipts.
Set up a retirement plan before the end of the tear and contribute to it. Talk to your financial planner on ways this can be done.
Prepare for Next Year Right Now
Get a jump on next year by meeting with your small business accounting service and outlining a process that will see a better 2017.
We are a full-service Accounting firm licensed in Colorado offering a broad range of services for business owners, executives, and independent professionals in Greeley, Fort Collins and Loveland including small business accounting, tax services and bookkeeping. We are affordable, experienced, and friendly.