Small business tips on year-end tax preparation are designed to help you make sure you don’t miss any opportunities before the the New Year rolls in.
Amidst all the hustle and bustle of holiday gift buying, family gatherings and parties, it is important to remember to plan for your year-end tax preparation. These small business responsibilities can easily get shoved to the back burner during this time of year.
If you don’t plan, it can cost you thousands of dollars of higher tax payments in April of the new year.
Knowing the basics of year-end tax preparation is important for those who want to minimize their taxes. That is nearly everyone, right? Understanding the ins and outs can save you a small bundle of cash.
Outlined below are a few basic tips to plan the end of your calendar year.
- Know your tax bracket. This site is a great way to estimate exactly how much you will owe in taxes. If you are new to filing taxes, it is also a great resource for learning about the specific factors that affect how much you will owe.
- Attention those who work from home: Remember to claim your deduction for your home office. You will need to know your rent, utilities and the square feet of your office and your home, among other things. It is a great idea to start compiling this information if you have not already.
- Find a reputable tax preparation service. If you are newly independent from your parents or you have recently moved to a new area, now is the time to find a new firm for tax preparation services. There are lots of places to consider, including local accountants’ offices or your local H&R Block, among others.
- Plan your charitable donations. Good deeds in the form of donations are tax deductible. Any holiday donations you make, whether it is monetary, or is in the form of food or used clothing, it is likely that it could contribute to your tax return.
These are just a few basic tips to get you headed in the right direction. After this post, we’ll be following up with three more detailed posts about organizing your receipts, reconciling your bank statements and managing your receivables and payables for year-end.
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“Bert Doerhoff is the owner and founder of Accubiz, an accounting firm based out ofJefferson City,Missouri. He has been chosen multiple times by CPA Digest for the ‘Digest 50 Award,’ representing one of the top 50 CPA firms in the nation. He speaks at numerous state and national level conferences on various business management topics.”
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