When you run a small business time can easily get away from you. There are so many daily tasks that keep us busy but there are a few that could be crucial to saving us money. Here are 4 steps every small business owner should take to stay ahead before year-end hits.
1. Know your Filing Dates
As of 2016 some dates changed. Tax returns for calendar-year partnerships are now due March 15 instead of April 15, and tax returns for calendar year C corporations are now due on April 15 instead of March 15.
2. Consider Deferring Income and Accelerating Deductions
If you expect your business to be in the same tax bracket or lower in 2016, defer revenues until next year so that you won't pay taxes on them until you file for 2016. Accelerate your expenses into this year, so you can enjoy the deduction now.
If you expect your business will be in a higher tax bracket next year than it is this year, accelerate revenues into 2015 so they'll be taxed at this year's lower rate. Postpone deductible expenses until next year so you can enjoy the deduction when your tax rate is higher.
3. Max Out Your Retirement Plan Contribution
Why not give your money to yourself instead of to the taxman? Making a pre-tax contribution up to the maximum amount allowable for 2015 will reduce your taxable income for this year. You have until December 31 to make your 401(k) contributions and until April 15 of next year to make IRA contributions.
4. Automate and Cloud-Base your Accounting
Add an app that tracks your expenses by taking pictures of receipts on your smartphone, then uploads them to the cloud. If you use mobile payment processing apps, such as PayPal or Square, get accounting software that syncs with them, too. Cloud-based accounting software to organize your financial information, you and any authorized employees can easily access it securely, wherever you are.
For more money-saving tips check out Quickbooks.Intuit.com or call PK Tax Services for a quick consult to keep you on track!