3 Year End Tax Tips for Small Businesses

Tax TipThere is a lot going on in December with Christmas and Hanukkah quickly approaching. At this time each year it is important that we get our tax ducks in a row.

1. Make sure your shoe box is organized: Some customers still use shoe boxes but on the whole this message is to recognize that your accounting records are in order. Maybe when the weather was nice it was easy to get outside and leave the record keeping for the future. Well that time is now, take the time now to make sure that your books are in order and accurate no matter if you use QuickBooks, a ledger, or a shoe box. Get everything in place and ready for your accountant.

2. If it was a good year make a few purchases: December is a great time to make purchases your business that you will use in the immediate future which will maximize your deductions for this year, if your cash flow permits. Of few examples of items:

  • Office Supplies: Stock up on paper, envelopes, laser printer cartridges, business cards, and other office supplies.
  • Office Equipment: If you have been planning to buy new office equipment consider purchasing it now. For example, you may want to purchase that new computer you have been holding off on purchasing.

3. Contribute to your Retirement: Make contributions or extra contributions to your retirement plan (if you do not have one please set one up this month). Just confirm that you have not reached the maximum contribution limits for your retirement plan. (401k, KEOGH, Roth IRA, or SEP).

Of course each business owner’s situation and accounting methods vary so these tips are not for everyone especial when considering the cash method versus the accrual method. The cash method of accounting allows for deductions reported for the year that you write the check to the vendor while the accrual accounting method allows you to record an expense when you receive the product or service.

Share

Tags: , , , , ,

11 Responses to “3 Year End Tax Tips for Small Businesses”

  1. Sean says:

    Good Post Martin!

    Keep them coming.

    Sean

  2. Streaming says:

    Great. Are you going to keep writing articles? I read all your posts. But.. it has been very slow to load lately.

  3. martin says:

    Glad I can help!

    Martin

  4. martin says:

    There is a new one coming out tomprrow:) Thx for reading.
    Martin

  5. martin says:

    Hi Ciraolo,

    I think that you know the naswers to your questions, Mr. Accrual. Silly boy.

  6. martin says:

    Is this really true, Allie? If so, I am flattered. If not, then you are taking advantage of me.

    Pls tell me the truth.

    Martin

  7. martin says:

    Good question. I must ask my web guy.

    Martin

  8. martin says:

    I have 47 comments thus far and they are all spam. People just trying to promote their own sites and products/services. Who has time to surf the web and post comments on blogs?

    I need to understand this better.

    MPT

  9. martin says:

    Oh, do share how to make this happen. Sounds great!

    Martin

  10. louis vuitton handbags says:

    Nice being going to your blog once again, it has been months for me. Nicely this content that i’ve been waited for so long. I need this piece of writing to comprehensive my assignment inside college, and it has exact same subject together with your article. Thanks, good share.

  11. Great post about Year End Tax Tips for Small Businesses.
    Small business are great for trying out new markets”:’

Leave a Reply

Spam Protection by WP-SpamFree