Year-End Tax Tips for Small Businesses
A survey conducted by an independent financial expert for Forbes indicated that 93% of business owners overpay on their annual taxes. Nobody expects you to be a financial wizard, as you have a business to run. However, it is important that you do know where and how you can save money that can be pumped back into your business.
With the end of the tax year looming like a mountain, your first step is to contact financial advisors or even accountants Cheltenham, who will advise you on important aspects to having a healthy year-end.
To close your year healthy, follow these tax preparation steps.
Contribute Towards Charity
While it is always a good idea to donate, is it a solid business solution? The thing you must remember is to use proper supporting documentation. The advantage of a donation is that it does not need to be money. You can donate any goods from food to clothes or toys and claim for the market value.
Make Purchases Now
Does your business need anything? Stock up now on things ranging from vendor payments that you can pay in advance to office supplies and upgrade the office technology. This will enable you to maximise deductions.
Did you have a good financial year? You need to consult with accountants Cheltenham for help in running the relevant reports. They have the expertise to work with you to see if numbers correspond with invoices and advise on the correct action to take.
They will be able to tell you if it is necessary to defer income for the current period that is due before your tax returns to the next financial year. They will be able to advise if it makes financial sense, as it will depend on your annual income levels.
Contribute to or Start a Retirement Plan
Year-end financial hassles and tax returns do not have to be a major headache when you use professionals like Randall and Payne. Speak to them to find out if it makes sound business sense to set up a retirement plan if you do not have one set up already. If you do, find out if you should make additional payments towards your plan.
Keep in mind that you will be in the same situation again next year.