Do you wait until the year is over to update your books? If so, you’re missing out on seeing if you could have saved some money before the year ended. Keeping accurate books all year long could allow you to review your income situation and decide if it’s beneficial to defer income or make big purchases. By ignoring your books, you might as well just hand your money over to the IRS now!
If your accounting is up to date before the year is over, you still have time to see how you can cut your tax bill down.
- Any income your company can receive during the first few weeks of January as opposed to the last weeks of December can save you money.
- You could decide to purchase items your business will require in the immediate future during the current tax year to maximize deductions, if cash flow permits.
- Maybe making payments to retirement accounts, such as a 401(k), KEOGH plan, Roth IRA, or SEP, is the way you’d like reduce your income for this year.
These tax savings strategies have one thing in common: they must be implemented before the tax year ends to save you money. Start updating your books today before it’s too late!