Ah, September! The weather’s cooling down, the holidays are in sight, and... tax season is lurking just around the corner. While the thought of tax planning might not exactly scream "holiday cheer," taking the right steps before the year ends can save you a significant chunk of change when Uncle Sam comes knocking. And who doesn’t like saving money? If you don’t, this might not be the blog for you—but we suspect you’re here because you do!
For small business owners, year-end tax planning can feel a bit like trying to solve a jigsaw puzzle—one with a few pieces missing and a couple of extra pieces thrown in for fun. But here’s the good news: with a little strategic thinking and some smart moves, you can legally reduce your tax liability and head into 2025 with more peace of mind (and maybe even a few extra dollars in your pocket).
This week, we’ll break down some tax planning strategies that are not only practical but surprisingly easy to implement. So, grab your pumpkin spice latte and let’s dive into how you can wrap up the year with a financially sound, tax-savvy plan.
Maximize Deductions Before Year-End
When it comes to taxes, timing is everything—and the way your business files taxes (either on a cash basis or accrual basis) affects when you can claim deductions.
- If your business uses cash basis accounting (the most common method for small businesses), you record income when you receive it and deduct expenses when you pay them. It’s simple and aligned with your cash flow, which makes it easier for year-end tax planning.
- On the other hand, accrual basis accounting requires that you recognize income when it’s earned and expenses when they’re incurred, even if no cash has exchanged hands. While it offers a clearer picture of long-term financial health, it’s less flexible for immediate tax planning.
For the purposes of this blog, we’re going to focus on cash basis accounting—because it allows for more flexibility in accelerating deductions before year-end to reduce your taxable income. Let’s dive into how you can take full advantage of deductions this year.
Prepay Business Expenses
If your business has regular expenses like rent, utilities, or insurance, consider prepaying them before December 31st to claim the deduction this year. This is an easy way to reduce taxable income and get a jump on next year’s bills. Just remember to keep it reasonable—you want to pay for legitimate, recurring expenses that your business will incur in 2025, not stockpile paper clips for the next five years!
- Pro Tip: Focus on fixed expenses like rent and insurance. These are predictable and safe bets for prepayment under the cash basis method.
Capital Purchases and Section 179 Deduction
Need new office equipment, machinery, or a company vehicle? Under Section 179, you can immediately deduct the full cost of qualifying purchases in the year they’re made and put into use—rather than spreading out depreciation over several years. So, if you’ve been eyeing that new computer or equipment, now’s the time to buy!
- Pro Tip: Section 179 has limits on how much you can deduct, so check the IRS guidelines for the current year. That shiny new company car might be a dream, but maybe stick with a laptop for now!
Employee Bonuses and Benefits
Planning to give your hardworking employees a year-end bonus? Not only will it make them happy, but it’s also deductible—as long as you pay out the bonuses before year-end. This is a great way to reduce taxable income while keeping your team motivated. Just remember, under the cash basis method, the bonus must actually be paid (not just promised) for it to count in this year’s tax return.
- Pro Tip: Don’t forget other benefits like health insurance or retirement contributions—if you pay them before December 31st, you can deduct them too.
Additional Deductions to Watch Out For
While the major deductions like capital purchases and employee benefits can have a big impact, there are other deductions you shouldn’t overlook. These smaller deductions can quietly add up and provide valuable savings.
Home Office Deduction
Do you run your business from home? If so, the home office deduction allows you to deduct a portion of your rent, utilities, or mortgage interest for the space you use exclusively for business purposes. Just make sure that your office space is actually dedicated to work—your living room doesn’t count if it’s doubling as your Netflix binge-watching zone.
- Pro Tip: Use the simplified home office deduction method if you want to keep things easy—$5 per square foot of office space, up to 300 square feet.
Mileage Deduction
If you use your personal car for business-related travel, you can deduct either the actual expenses (like gas and repairs) or use the IRS’s standard mileage rate, which is 67 cents per mile for 2024. That means all those trips to meet clients, run errands, or attend conferences can add up to significant savings.
- Pro Tip: Use a mileage-tracking app to ensure you don’t miss any deductions. It’s as easy as swiping left or right to log business miles.
Business Meals
Had a lunch meeting with a client? Great! You can deduct 50% of the cost. So, take advantage while you can—after all, it’s a delicious way to save on taxes.
- Pro Tip: Keep detailed records of the meal, who attended, and the business purpose. “Lunch with a friend” won’t pass IRS scrutiny, but “lunch with a client to discuss project XYZ” sure will.
Office Supplies and Software
Last but not least, don’t forget about everyday office expenses. Whether it’s paper, pens, printer ink, or that new accounting software you’ve been eyeing, these small but essential purchases are fully deductible under the cash basis method—as long as you buy them before December 31st.
- Pro Tip: Now is a great time to stock up on office supplies or renew software subscriptions. Those little things can add up to big deductions.
By leveraging these deductions before the year closes, you can minimize your taxable income and put your business in a stronger position heading into the new year. After all, why let Uncle Sam take more than he needs when a little planning can keep that money in your pocket?
Consider Deferring Income
One of the perks of operating on a cash basis is that you can control when you recognize income—giving you some flexibility in how much of it shows up on this year’s tax return. If you’re expecting a strong finish to the year (congrats!), but you’d rather keep your taxable income on the lower side, you can consider deferring some of that income to next year.
But before we dive into the details, let’s be clear: we’re not suggesting you stop making sales or stop working. (Please don’t do that!) Instead, you can use some strategic timing to manage when income hits your books.
Delaying Invoices
If you can afford to wait, one simple way to defer income is by holding off on invoicing clients until after December 31st. When you’re on the cash basis, income isn’t recognized until you physically receive payment. So, if a client is ready to pay in December, but you can delay the invoice until January without affecting your cash flow, you can push that income into the new tax year.
- Pro Tip: This is a great strategy if you’re already having a banner year and would prefer to smooth out your income over two years. Just make sure delaying won’t hurt your cash flow—after all, you still need to pay the bills!
Structuring Year-End Deals
If you’re in negotiations for a large sale or project, consider structuring the deal so that payments (and therefore income) aren’t due until 2025. For example, if you’re wrapping up a big project in December, you might agree with the client to invoice in January instead of immediately. This way, the revenue doesn’t hit your 2024 books and can be deferred into 2025.
- Pro Tip: Make sure this works for both you and the client—no one wants to feel like they’re being delayed for tax reasons alone. Also, this approach may not be ideal if your business relies on a consistent cash flow to operate smoothly.
Subscription-Based Income
Do you run a subscription-based business or have clients on retainer? If so, another option is to offer discounts or incentives for clients who renew their subscriptions or retainers at the start of the new year. This not only defers income but may also build client loyalty by encouraging them to commit to a longer-term relationship.
- Pro Tip: Use this tactic wisely. Make sure any incentives you offer don’t cut too deeply into your profitability—after all, the goal is to defer income, not lose it!
Why Deferring Income Can Help
You might be wondering, why bother deferring income at all? Well, if you’ve had a particularly profitable year and expect to be in a higher tax bracket, pushing some income into 2024 can lower your current year’s taxable income, reducing the amount you owe. Plus, if you anticipate that next year’s income might be lower, deferring income can help you balance your taxable earnings across two years and potentially pay a lower rate in both.
Word of Caution
While deferring income can be a savvy move, it’s not always the best option for every business. If your cash flow is tight or you rely on year-end sales to cover operating expenses, holding off on receiving income could put you in a tough spot. Always weigh the benefits of reducing your tax burden against the potential impact on your day-to-day operations.
By strategically deferring income, you can manage your taxable income and avoid a year-end tax bill that takes a bigger bite than necessary. Just be sure to balance this with your cash flow needs, so you don’t leave yourself scrambling to cover expenses.
Contribute to Retirement Plans
Who doesn't love the idea of saving money twice—once for your future self and once on your tax bill? Contributing to retirement plans is a win-win for small business owners. Not only are you securing a nest egg for your golden years, but you’re also getting a nice deduction that can significantly reduce your taxable income for the current year. Let’s break down how to make the most of retirement contributions before the year ends.
Maximize Contributions to Your Own Retirement
As a small business owner, you have several retirement plan options that allow you to make contributions for both yourself and your employees. The more you contribute (within limits), the bigger your tax deduction. Popular plans include:
- SEP IRA (Simplified Employee Pension Plan): You can contribute up to 25% of your net earnings from self-employment or $69,000 (whichever is less) in 2024. The best part? You can make contributions up until the tax filing deadline (including extensions).
- SIMPLE IRA: The contribution limit for 2024 is $16,000, with an additional $3,500 in catch-up contributions for those over 50. SIMPLE IRAs are a great option if you want to contribute on behalf of employees as well. The employee deadline for contributions is January 30, 2025 and the employer contributions are due by the tax filing deadline (including extensions).
- Solo 401(k): Perfect for solopreneurs or businesses with no employees (other than your spouse), the contribution limits are high—up to $69,000 or $76,500 if you’re over 50. This is a powerhouse for deductions and future savings. Deadlines for employee contributions are the tax filing deadlines, employer contributions are the filing deadlines (including extensions).
- Pro Tip: While you can technically contribute to some retirement plans after the year ends (as long as it’s before the tax deadline), the earlier you contribute, the sooner your money starts growing for you. Keep in mind, there are many retirement options out there, be sure to consult with a qualified professional to select the best option for you and your business.
Set Up Retirement Plans for Employees
If you don’t already have a retirement plan set up for your employees, now’s the time to consider it. Not only does offering a retirement plan make you an attractive employer, but the contributions you make on behalf of your employees are deductible. Plus, certain retirement plans qualify you for a tax credit of up to $5,000 for the first three years of establishing the plan, under the SECURE Act.
- Pro Tip: The SECURE Act also allows for a $500 credit if your retirement plan automatically enrolls employees. It’s a small business-friendly incentive that could reduce your tax bill even further!
Catch-Up Contributions (If You’re 50 or Older)
If you’re 50 or older, you get the added benefit of making “catch-up” contributions to your retirement accounts. This is a great way to reduce your taxable income by increasing your contribution limits. Make sure to look up the catch-up limits for your particular retirement account to take full advantage. That’s even more money set aside for the future, and less taxable income to worry about now.
- Pro Tip: Even if you haven’t hit 50 yet, knowing about catch-up contributions helps you plan for future years. You’ll be thanking your past self for getting a head start!
The Double Win of Tax Deferral and Future Security
Contributing to retirement not only lowers your current tax bill by reducing your taxable income, but it also allows your savings to grow tax-deferred. This means you won’t pay taxes on the money in your retirement account until you start withdrawing it—hopefully at a time when you’re in a lower tax bracket.
It’s like giving your future self a high five: “Thanks, 2024 me, for putting money away and saving on taxes!” And with time on your side, those contributions will compound, turning into a bigger nest egg than you might expect.
- Pro Tip: If cash flow is a concern, remember that contributions to some retirement accounts can be made up until your tax filing deadline, giving you extra time to contribute and still benefit from the deduction for the current year.
By contributing to retirement plans before the year ends, you not only secure your future but also significantly reduce your taxable income. It’s like hitting two birds with one stone—except in this case, you’re hitting financial freedom and tax savings. Now, how’s that for a smart move?
Take Advantage of Tax Credits
Deductions get a lot of the tax-saving spotlight, but let’s not forget about the real superheroes of tax planning: tax credits. While deductions reduce your taxable income, tax credits reduce your actual tax bill dollar for dollar—and that’s the kind of math we can all get behind. That means if you have a $2,000 tax credit, your tax liability is reduced by the full $2,000—not just a percentage of that amount. For small business owners, tax credits can be a game-changer, especially if you qualify for some lesser-known opportunities. Let’s explore a few that might save you big bucks before the year ends.
R&D Tax Credit
Innovation isn’t just for big tech companies—small businesses that invest in research and development (R&D) may be eligible for the R&D Tax Credit. This credit is designed to reward businesses that are working to improve their products, processes, or technology. So, if you’re tinkering with a new product design, testing out a better way to serve customers, or improving your internal processes, this credit could be for you.
- Pro Tip: Even if you think your business activities don’t scream “research and development,” don’t dismiss this credit. The IRS defines R&D broadly, so it’s worth consulting with a tax professional to see if your activities qualify. You might be surprised!
Energy-Efficient Commercial Building Tax Deduction
Thinking about going green? Investing in energy-efficient improvements to your business property can not only lower your utility bills but may also make you eligible for the Energy-Efficient Commercial Building Tax Deduction. Whether you’re upgrading to energy-efficient HVAC systems, installing new windows, or improving your insulation, these investments can qualify for a deduction.
- Pro Tip: Going green isn’t just good for the planet—it’s great for your bottom line too. Not only do you save on operating costs, but you also benefit from a tax deduction that could offset the cost of the upgrades.
Work Opportunity Tax Credit (WOTC)
Hiring new employees? If you’ve hired individuals from certain targeted groups that face significant barriers to employment, such as veterans, ex-felons, or long-term unemployed workers, you could be eligible for the Work Opportunity Tax Credit (WOTC). This credit rewards businesses that give opportunities to those who might otherwise have a tough time getting hired.
- Pro Tip: The WOTC can provide a credit of up to $9,600 per qualified employee, so it’s definitely worth looking into if you’ve hired anyone from the targeted groups in the current tax year.
Small Business Health Care Tax Credit
If you offer health insurance to your employees, you may be eligible for the Small Business Health Care Tax Credit. This credit is available to small businesses that offer health coverage and pay at least 50% of their employees’ premiums. The credit can cover up to 50% of the premiums you pay, which can lead to substantial savings.
- Pro Tip: To qualify, your business must have fewer than 25 full-time equivalent employees, and their average annual wages must be less than $56,000. This is a great way to provide a valuable benefit to your team while reducing your tax liability.
Disabled Access Credit
Does your business make efforts to be accessible to people with disabilities? The Disabled Access Credit can help you recover some of the costs associated with making your business more accessible. This credit applies to small businesses that incur expenses for ADA compliance, such as installing ramps, modifying restrooms, or providing communication assistance for hearing-impaired or visually impaired customers.
- Pro Tip: If your business has fewer than 30 employees or less than $1 million in revenue, this credit can cover up to 50% of eligible expenses, up to a $5,000.00 credit.
Employee Retention Credit (ERC)
Though the Employee Retention Credit (ERC) is no longer available for wages paid in 2024, businesses that kept employees on their payroll during the pandemic may still be able to retroactively claim this credit for 2020 and 2021 wages. The ERC was designed to help businesses that were financially impacted by COVID-19, and it could result in a significant refund if you haven’t claimed it yet.
- Pro Tip: If your business experienced a partial or full suspension of operations due to government orders or saw a significant decline in gross receipts during the pandemic, you could be eligible to claim up to $5,000 per employee for 2020 and up to $7,000 per employee, per quarter for 2021.
Paid Family and Medical Leave Credit
If you offer paid family and medical leave to your employees, you may be eligible for the Paid Family and Medical Leave Credit. This credit allows eligible employers to claim up to 25% of wages paid to employees who are on family or medical leave. The key here is that the leave must be part of a formal, written policy and must offer at least 50% of the employee’s regular pay.
- Pro Tip: This credit applies to businesses that provide at least two weeks of paid family and medical leave per year to full-time employees. The leave must be for qualifying reasons, such as the birth or adoption of a child, care for a family member, or the employee’s own serious health condition.
Credit for Employer-Provided Childcare Facilities and Services
Businesses that provide on-site childcare for employees or contract with childcare facilities to provide services may be eligible for the Credit for Employer-Provided Childcare Facilities and Services. This credit is worth 25% of the qualified childcare expenses paid by the employer, plus an additional 10% of any childcare resource and referral expenses.
- Pro Tip: The maximum credit you can claim is $150,000 per year, but it’s a great way to attract and retain employees while lowering your tax bill.
New Markets Tax Credit (NMTC)
The New Markets Tax Credit (NMTC) encourages investment in low-income communities by providing a credit to businesses that invest in qualified community development entities (CDEs). This credit is intended to spur economic growth in underserved areas, and it can be a valuable tax break for businesses that are expanding or making significant investments in these communities.
- Pro Tip: The credit equals 39% of the investment, spread over seven years. It’s a great incentive if your business is committed to community development and revitalization.
Conclusion on Tax Credits
Tax credits are like the hidden gems of tax planning—they might take a bit of extra effort to uncover, but they can significantly lower your tax bill if you know where to look. Whether you’re taking advantage of credits for hiring, employee benefits, or community investment, it’s worth investigating which ones apply to your business. With a little bit of digging (and maybe the help of a good tax professional), you could unlock some serious savings.
Claiming Tax Credits: A Word to the Wise
While tax credits are a fantastic way to lower your tax bill, they can be tricky to navigate, with specific qualifications and paperwork requirements. Not all businesses will qualify for every credit, and some may have annual caps or expiration dates, so it’s important to stay informed and work with a tax professional to make sure you’re maximizing your benefits. When in doubt, ask an expert!
Review Your Business Structure
As your business grows and evolves, your tax situation should too. If you haven’t reviewed your business structure in a while, year-end tax planning is the perfect time to do it. The legal structure of your business—whether you’re a sole proprietorship, LLC, S-Corp, or C-Corp—has a big impact on your tax liabilities. Choosing the right structure could potentially save you thousands in taxes each year. Let’s explore why it’s worth taking a second look at your current setup.
Sole Proprietorship or LLC? Consider an S-Corp Election
If you’re a sole proprietor or single-member LLC, you’re likely taxed as a "pass-through" entity, meaning the income from your business is passed directly to your personal tax return. While this keeps things simple, it could also mean higher self-employment taxes. That’s where an S-Corp election can make a difference.
By electing to be taxed as an S-Corp, you can split your income into two parts: a reasonable salary for yourself (which is subject to payroll taxes) and the rest as distributions, which are not subject to payroll taxes. This can significantly reduce your overall tax liability while keeping more of your hard-earned income in your pocket.
- Pro Tip: The IRS expects your salary to be “reasonable,” so you can’t pay yourself peanuts and take everything as distributions. Work with a tax professional to determine the right balance for your situation.
LLC vs. C-Corp: Should You Make the Switch?
If your business is scaling up and you’re seeking investors, you might wonder if it’s time to switch from an LLC to a C-Corp. C-Corps offer the ability to issue shares and attract investors, but they’re also subject to double taxation—once on the corporation’s profits and again on any dividends you pay yourself.
However, there are some perks: The corporate tax rate is currently a flat 21%, which could be lower than your personal tax rate if your business is highly profitable. Additionally, you may be able to deduct fringe benefits like health insurance or retirement plan contributions, which are not available for pass-through entities.
- Pro Tip: Switching to a C-Corp can be complex and isn’t for everyone, especially if your business doesn’t yet need outside investors. But if you’re in growth mode and need capital, it’s worth considering.
Pass-Through Deduction for Qualifying Entities
Thanks to the Qualified Business Income (QBI) Deduction, owners of pass-through entities—such as sole proprietorships, partnerships, LLCs, and S-Corps—can potentially deduct up to 20% of their qualified business income. This is a significant deduction, but it comes with restrictions based on your income level and the type of business you run.
If your total taxable income (before the QBI deduction) is under $191,950 for single filers or $364,200 for joint filers in 2024, you can generally take the full 20% deduction. If you exceed these limits, the deduction starts phasing out, particularly if you’re in certain service industries like law, healthcare, or accounting.
- Pro Tip: The QBI deduction is a powerful tax-saving tool, but navigating its rules can be tricky. It’s worth consulting with a tax professional to ensure you’re maximizing this benefit.
Business Structure Reviews: Why They Matter
Your business structure isn’t something you should "set and forget." As your company grows, the structure that once made sense might not be the best fit anymore. For example, a sole proprietorship or LLC might work great when you’re just starting out, but as your profits grow or you hire employees, an S-Corp election could save you significant money on taxes. Similarly, if you’re planning to bring in investors, transitioning to a C-Corp might be a smart move.
Regularly reviewing your business structure with a tax professional ensures that you’re not leaving money on the table or paying more in taxes than necessary. It’s about setting your business up for success—both in terms of tax efficiency and future growth.
Making a Change: What to Know
Changing your business structure can have significant tax implications, but it’s not a decision to make lightly. Some changes, like electing S-Corp status, can be done easily by filing the right paperwork with the IRS. Others, like converting to a C-Corp, involve more legal and financial planning.
If you’re considering a change, it’s important to look at both the immediate tax benefits and the long-term impact. Sometimes, staying with your current structure is the best option, especially if you’re happy with your tax situation and business growth.
- Pro Tip: The IRS has deadlines for some business structure changes, like filing for S-Corp status by March 15th of the following year you want it to take effect. So, plan ahead if you’re thinking about making a switch.
Final Thought on Reviewing Your Structure
Whether your business is growing, downsizing, or just staying steady, reviewing your structure at the end of the year can ensure you’re maximizing tax efficiency. Even small tweaks can lead to big tax savings, and making sure you’re in the right structure could be one of the smartest moves you make as a business owner.
Plan for Estimated Tax Payments
If there’s one thing small business owners know all too well, it’s the importance of paying estimated taxes throughout the year. Unlike traditional employees who have taxes withheld from each paycheck, small business owners need to make sure they’re sending the IRS their fair share on a quarterly basis. Miss a payment, or come up short, and you could face underpayment penalties—something no one wants to deal with, especially around tax season.
As we approach the end of the year, now is the time to ensure that your estimated tax payments are on track. If not, you’ve still got a chance to make up the difference before penalties kick in.
What Are Estimated Tax Payments?
Estimated tax payments are the quarterly payments you make to cover the taxes on your business’s income, including self-employment tax, which covers your contributions to Social Security and Medicare. These payments are due four times a year (April, June, September, and January of the following year). If you’re new to running a business, this system can feel like a major shift from the automatic withholding you were used to as an employee.
- Pro Tip: Estimated payments are required if you expect to owe more than $1,000 in taxes when you file your return. Don’t ignore them—penalties can add up quickly if you fall behind.
Review Your Income and Payments to Date
Before the year ends, take a moment to review your income and the payments you’ve made so far. If your business had a great year and your income spiked, it’s possible that your quarterly payments haven’t kept up, and you could be facing a big bill come tax time. On the other hand, if business was slower than expected, you might have overpaid and could adjust your final payment accordingly.
- Pro Tip: If your income fluctuates wildly from quarter to quarter, consider using the annualized income installment method when calculating your estimated payments. This method bases your payments on your actual income earned in each period, rather than an even distribution across the year.
Make a Final Payment to Avoid Penalties
If you find that you’ve underpaid your estimated taxes for the year, you still have time to make a final payment before year-end to avoid penalties. The IRS’s safe harbor rule allows you to avoid underpayment penalties if you’ve paid at least 90% of your current year’s tax liability or 100% of your prior year’s tax liability (110% if your adjusted gross income exceeds $150,000).
- Pro Tip: If you expect a much larger tax bill due to increased income this year, it’s worth making an extra payment in December to reduce your risk of penalties.
Don't Forget State and Local Estimated Taxes
While it’s easy to focus on federal tax payments, don’t forget about state and local taxes. Many states also require estimated tax payments, and the deadlines often align with federal due dates. Missing a payment at the state level can be just as costly as missing a federal payment, so make sure you’re covered across the board.
- Pro Tip: If you operate in multiple states or have income from various locations, your tax situation might be more complex. In this case, it’s especially important to stay on top of both state and local estimated payments to avoid surprises.
Self-Employment Tax and Other Considerations
Don’t forget that as a small business owner, you’re also responsible for self-employment tax—which covers your contributions to Social Security and Medicare. This is in addition to regular income tax and is calculated as 15.3% of your net business income. Estimated tax payments need to cover both your income and self-employment taxes, so it’s important to factor this into your calculations.
- Pro Tip: If you’re unsure about how much you should be paying in estimated taxes, using IRS Form 1040-ES to calculate your payments can help. It’s a straightforward guide that walks you through the process.
Adjusting Your Payments for Next Year
Once you’ve tackled your estimated taxes for this year, it’s a good idea to look ahead and adjust your quarterly payments for next year. If your income has grown significantly, you’ll want to increase your payments to avoid scrambling to catch up next December. On the flip side, if things are slowing down, you can reduce your payments to keep more cash in your business throughout the year.
- Pro Tip: If you’re new to the estimated tax game or just want to make sure you’re getting it right, a tax professional can help you set up a payment schedule that works with your business’s cash flow and avoids penalties.
Why Estimated Taxes Matter for Year-End Planning
Estimated tax payments might not be the most exciting part of running a business, but they’re critical for avoiding unexpected tax bills and penalties. By reviewing your income, making any necessary final payments, and planning ahead for next year, you can avoid the stress of a last-minute scramble to pay the IRS. Staying on top of your estimated taxes is one of the easiest ways to keep your finances (and your peace of mind) in check as the year wraps up.
As we head into the final sprint to year-end, tax planning may not be at the top of your to-do list—but trust us, a little effort now can go a long way when the holidays are in full swing and you’re able to enjoy your eggnog without the stress of last minute tax emergencies! By taking the time to maximize deductions, defer income, contribute to retirement plans, and review your business structure, you’re setting yourself up for financial success and potentially saving yourself a bundle in taxes.
Remember, the key to effective tax planning is to act before the year ends. Of course, the world of tax planning can be complex, and no two businesses are the same. That’s why it’s always a smart move to consult with a tax professional who can guide you through these strategies and tailor them to your unique situation. With the right approach, you’ll not only minimize your tax liability but also position your business for a successful and profitable new year.
Waiting until the last minute can be costly and stressful, and no one needs that at the holidays! So go ahead, check off those tax-planning tasks, and then enjoy a well-deserved break—knowing that your tax situation is in tip-top shape.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Consult with a qualified professional for personalized guidance tailored to your specific needs and situation. Feel free to reach out to The Numbers Agency for a free consultation to see what how we can help!