Tax Planning for Businesses
Good Afternoon!
I hope wherever you are you are recuperating well from Thanksgiving. As this year starts to wind down, I thought I would share my thoughts about year-end planning. As a tax accountant, I always recommend doing year-end planning. First, it gives you the ability to calculate your tax liability and gives you the opportunity to reflect on this past business year. Second, as with any planning, it allows for the opportunity to implement tax saving strategies to (hopefully) reduce your tax liability. There is very little that can be done after the year-end close, and every opportunity should be done prior. Consulting with your tax advisor, there are several tax strategies to potentially take advantage of. For instance, looking at your cash versus accrual method of accounting and how it relates to your business. Also, are there any assets you can purchase prior to 12/31 to take advantage of depreciation? How about taking bonuses for your shareholders (if you have them and depending on your individual tax rate)? No matter what your business, planning now can save you a headache and lots of wasted money in the future!
*Suggestions and not tax advice. Please consult your accountant or tax advisor as it relates to you.
The High Heeled Farmer 