In Part 1, we laid out some ways to plan for a lower tax bill in 2009. If you haven’t seen Part I, check it out: End of Year Tax Tips For Small Business, Part 1.
Here are some more ideas for your business.
Pay Your Bills Now
Rent, utilities, insurance, advertising: these are all familiar expenditures for your small business. Many financial professionals recommend paying these bills early in order to save money on your tax returns. This deduction is also valid for employee bonuses – a kind year-end gesture that benefits your finances in the long term.
Get Up To Date With Tax Laws
Staying up to date with current tax laws is among the best ways to save the most money. After all, how can you do what’s best for your small business if you don’t know what the laws are? Consult with your CPA or financial advisor to find out the tax laws most relevant to your business.
Do you need a great CPA, financial advisor of bookkeeper? Contact us and we’ll refer you to someone.
You can also check out the IRS website for more information. They have a full list of qualified deductions that small businesses may claim. Many small business owners miss deductions through ignorance of the law. Keeping current will rectify any omissions and benefit your business.
Here’s an IRS Article on Business Expenses.
Here’s some final advice.
Make sure you have receipts for every transaction you wish to deduct on your tax return. Keeping receipts makes bookkeeping a snap, and will be a life-saver if you should ever have a visit from the tax man.
So then, doesn’t this sound like a fun way to spend the last two weeks of December? Turning away from holiday festivities to work on your business may seem Scrooge-like, but it really is a great way to get a ready for a prosperous 2010!
