As the year is winding down, you want to make sure that you have everything in order with your taxes. You want to make sure that you have everything set-up tax wise in a way that really benefits you.
#1 Maximize Your Deductions
The first thing you are going to want to do is work on maximizing your deductions. If you have equipment that you have been waiting to upgrade all year, now is the time to invest in new equipment. If you have been wanting to plan a marketing campaign, plan and pay for it, even if you are waiting for the holiday season or even next year to run it.
Make any supply purchases that you need to for the rest of the year and into the next year as well. All of your business expenses will be deducted out of the money that you earn.
This is also a good time to make any yearly donations to charity that your business makes. If you have not donated yet, look into organizations in your community that could use donations of the goods and services that your business offers. Make sure that you do your research and donate to a charity that gives back to their recipients.
#2 Gather Together Receipts
Next, you need to get together all of your receipts. Hopefully, you can been tracking and logging all of your business expenses, invoices, and payments throughout the year. This is a great time to go over your books and make sure that you have the receipts to back-up each transition.
You can get your accountant to help with this task. Have your accountant check your books and update your records before the busy tax season starts will make doing your taxes much easier for your accountant.
#3 Decide How to Handle Bonuses
Finally, you need to decide how to handle any bonuses that you have promised your staff. Figure out if for accounting purposes it makes more sense to give your employees their bonuses in December or wait until January. Make sure that your staff clearly knows when they will get their bonuses. If the payment of bonuses doesn't make a different tax-wise for your company, allow your employees to choose to get their yearly bonus in December or January; it could make a different when they get their bonus for your employee's own tax purposes.
As the year starts to wind down, it is time to make sure that you have made all the necessary moves for your taxes. Have you maximized your opportunities for deductions? Remember that this includes things such as upgrading equipment, buying materials and supplies, and donating to charity. Make sure that you have all of your receipts in order, and determine when you will give out bonuses. Work with local accounting services to make sure that you have all your books ready to go for tax season.Share