4 Things Business Owners Should Do before Year-End (To Ace Tax Season)
November and December is the time for business owners to insure they are not missing out on any tax savings. Here are some things to think about.
- MAKE CHANGES TO RETIREMENT ACCOUNTS. Consider if a setting up a retirement account or if adjusting your contributions to your current one would make sense for you. Some types of retirement accounts have to be established by the end of the year. So now is a good time to look into this.
- CONSIDER IF IT MAKES SENSE FOR YOUR BUSINESS TO PURCHASE SOMETHING IT NEEDS BEFORE YEAR END. Does it need a new vehicle or a software package that bills annually? You may be able to expense or take a depreciation deduction for it all in 2022. This area can become complicated quickly so check with your CPA first.
- GET ORGANIZED. Spend time now getting your bookkeeping for the year caught up. If you can be among the early birds to get your completed information to your CPA in late January or early February you are very likely to get it done quickly. CPA firms start getting really busy by the last week of February when everyone else is also bringing in their stuff at the same time. So be early, you’ll get your stuff done early, and you’ll put the stress of tax season behind you.
- GET TAX PLANNING DONE NOW! Schedule a tax planning appointment with your CPA before year-end. The sooner the better. Once the calendar rolls over to the new year you have a lot fewer options to make changes your tax situation for the prior year. Your CPA will know your specific situation and can give you advice tailored to you. If they don’t offer that level of service, then find one that does.
Here are several other recent posts of mine that you might like:
Why Financial Planning for Business Owners is Unique
70% of Businesses Won't Sell and What to Do About It