Don't Put All Your Purchases
on Layaway This Winter
Fall Tax Tips for the Small and Smart Business Owner
With the fall season upon us, it won't be long before the end of the year is here. Rather than save all tax related questions, concerns, and responsibilities for December and January, here are some things I believe you should do now to review your situation.
Spend money. Time is running out in 2015, so don't shy away from spending money on your business to maximize deductions. Do you need to upgrade your equipment? Is it time to spend more on advertising? Can you make vendor payments now, as opposed to waiting until the new year? If you can buy it in 2015, you might as well do so.
Get organized. You may have plenty of time right now, but you know how busy things can get when the holiday season arrives and the end of the year begins to close in. By getting organized now, you can avoid a hectic situation in the future. From gathering receipts to running reports, there are things you can do well in advance of the new year.
Gather Deductions. Remember that things like business entertainment, travel and home office expenses can be deducted. Did you take a client out for dinner or lunch recently and discuss business? You may be able to deduct it.
Plan on ways to decrease revenue in December (and maybe even November). This sounds crazy, as every company shares the goal of increasing revenue month over month. However, if you can defer payments from December to January, you can effectively reduce your 2015 tax bill.
Notice all the post-Halloween (I can't use the "C-word" just yet) decorations out? The end of the year is coming soon and you will eventually run out of time to improve your tax situation.
As a small business owner, one or more of these tips may help reduce your tax bill for the current year. Ask your CPA, tax consultant, or me for other ideas.