There are only a few weeks until 2017 comes to an end. Assuming the company books are tax-ready, below are 5 easy tips you can use as a small business owner to minimize your tax liability.
1.Consider purchasing new or used equipment.
If your business is planning on purchasing equipment in the near future, it may be advantageous to purchase this now and put into service before the year ends. This allows your company to use the Section 179 benefit to reduce your taxable income. See further details here → http://www.section179.org/section_179_deduction.html
2.Estimate owed taxes.
Coordinate with your CPA to determine an estimated amount of taxes owed. Understanding this amount will make managing cash flow much easier as the new year begins and you plan purchases, bonuses, etc.
3.Ensure all business expenses were captured.
The last thing you want to happen is to spend money on the business, but not have it captured. If this may have happened to you, make sure to review bank activity for this personal account and add any business expenses to your Quickbooks (or Xero Accounting) company file.
4.Pay Vendors outstanding balances.
The goal is to reduce your taxable income. Paying off vendor balances before the year ends is a good way to start 2018 fresh, but also reduce your overall tax bill. Coordinate with your vendors and confirm past due balances, and pay these off if possible.
Before the year is over, It’s important to reconcile your company accounting records, outstanding payables, receivables, inventory, and anything else that can be reconciled when it comes to the financials of your business. You may catch certain items that would contribute to reducing your tax liability.
Norton Financials can help.
Norton Financials understands small business owners. You wear numerous hats throughout the day. You have little to no time to focus on the accounting and bookkeeping. It’s possible you have not updated the books for months, quarters, or even years. Norton Financials provides clean up services, in addition to ongoing bookkeeping & accounting so you can focus on other important areas of your business.
Norton Financials, located in Hoboken, NJ, helps small business owners like you. We provide Quickbooks/Xero Accounting training & support, Bookkeeping/Accounting, and Financial Consulting services. Give us a shout by email at Info@NortonFinancials.com or call (201)-855-6344 to learn more about how we can help your business!