Keeping your financial records up to date will decrease problems and penalties with the Internal Revenue Service. With a few weeks to go before the year end, now is the time to get organized and prepared for tax filing to avoid these issues.
Here are a few tips to business owners:
Keeping good records will reduce the time spent organizing at the last minute and fees paid to your accountant in preparing your taxes. Separate and record all of your yearly business related income and expenses.
Take Advantage of Deductible Expenses Before Year-End
Possibilities include charity donations, medical expenses and supplies, home office, travel expenses and higher-education expenses.
Delay Income Until Next Year (if you can)
Put off some bills to some clients, so the money won't come in until next year to decrease your tax bracket. The same strategy also applies if you expect to receive a bonus and can request that your employer defer it.
Increase Expenses (if necessary)
If you see that your income is in the higher bracket, you may make more purchases before year end to increase expenses and reduce taxable income.
Bookkeeping & More offer various business solutions to assist in your year-end preparations. For assistance call us at (914) 237-5088 or visit us online at www.bookkeepingnmore.com.