5 End of the Year Tax Tips for Business Owners

In December 30, 2016

The end of the year brings holiday festivities, enthusiastic plans for self-improvement, and perhaps a bit of nostalgia for days gone by. For business owners and the self-employed, it also brings quite a bit of responsibility. This is because, for those who use the traditional tax year, the time has come to make last-minute decisions that will influence how much money is owed to Uncle Sam. Though late December might not be the most enjoyable time of the year to work hard, it important to understand that a bit of foresight and prudence now could save you big bucks in the future. Here are five quick tips that you should take into account.

Review documents. It’s a good idea to review your documentation of the year gone by in order to make sure that everything is organized and present. If you are missing anything important, now is the time to find out, not on April 15th.
Defer income. Speak with your accountant about deferring any end of the year income to January. This can lower your annual income, and perhaps even push you into a lower tax bracket.
Make purchases. At the same time you defer income, it’s also a good idea to advance expenses, as most business costs are in some way tax deductible.
Work on your retirement plan. Money placed into a retirement plan is also tax deductible, which is a great reason to do something you should probably already be doing: start saving for your retirement!
Make a charitable donation. What better way to get into the holiday spirit while at the same time saving a nice chunk of change from the tax man? Make a donation to your favorite charity.

Precise Payroll can help you get organized when it comes to HR functions — which oftentimes has the benefit of making taxes that much easier. This new year, resolve to make a positive change for your business: contact Precise Payroll for more information!

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