It’s time to tackle something every business owner faces—tax season prep. Put in a little effort now, and you’ll save time, stress, and maybe even some money later.
Here are 5 end-of-year tax tips that might just save you money and headaches:
1. Get Your Books in Order
Now’s the time to make sure all your income and expenses are recorded correctly. Take a few hours to go through your records, match up receipts, and make sure everything adds up. (Consider adding a tool like QuickBooks or Wave to simplify this process next year.) Only have time for one thing this month? This single step will make tax time so much easier!
2. Make Smart Purchases
If you’ve been thinking about upgrading equipment, buying supplies for your business, or investing in continuing education now might be a good time. Purchases made before December 31st can often be deducted from this year’s taxes. Just make sure it’s something you really need!
3. Contribute to Retirement Accounts
Putting money into a retirement account like a SEP IRA or Solo 401(k) can lower your taxable income. Plus, you’re investing in your future self – win-win!
4. Consider Charitable Donations
If giving back is part of your business values, making donations before the end of the year can provide tax benefits. Just be sure to keep good records of your contributions. Research the charities you donate to here.
5. Double-Check Estimated Tax Payments
If you pay quarterly taxes, double-check that you’ve paid enough for the year. If there’s a shortfall, you still have time to make it up before penalties kick in. Your bookkeeper can help you calculate where you stand.
Bonus Tip: Plan Ahead for Tax Prep
Every business is unique, so it’s a great idea to chat with a tax pro who can give you personalized advice. The earlier you start, the smoother tax season will be, and they might spot opportunities you haven’t thought of!
Remember, as a virtual assistant, I’m here to help you stay organized and on top of these important tasks. Whether it’s keeping your records tidy, scheduling that meeting with your accountant, or researching the best new laptop for your business, I’ve got your back!