Year-End Accounting Tips
It’s almost time to ring in 2017, but it’s not all champagne and confetti because with the new year comes the ever-daunting tax season. The good news is that you can make it better by being proactive — you must resist the urge to procrastinate! Make your life easier during tax season by getting started with these year-end tips today.
Squeeze in Year-End Purchases
Before the year ends, check your profit and loss. If your income is more than expected, you can off-set the number by squeezing in some year-end purchases. Of course, you don’t want to purchase things you don’t need, but if you can get a few things you’ll use next year to reduce your tax liability this season, making the purchases in advance is beneficial.
Know Your Deductions
With so many deductions to take advantage of, it’s hard to remember them all. If you do your own taxes, it’s a good idea to refresh your memory each year by looking up a list of tax deductions for business owners. And at the very least, don’t miss the big ones — check out this list of top tax deductions for small business owners and make sure you have them covered, but to be truthful…we highly recommend you use a professional accountant to prepare your taxes.
Get Organized & Stay That Way
Staying organized for tax purposes throughout the entire year can be difficult when you have so many competing priorities. Make it easier on yourself by investing in software. With the right software, you can store and categorize receipts and expenses throughout the year so it’s all ready at tax time. As a business owner, there’s really no excuse for not using QuickBooks or some other type of accounting software. If you haven’t used it in 2016, buy it today and start the new year on the right foot.
Ask the Experts When Needed
The last thing you want is to get anything tax-related wrong because it will cost you more money and could even bring audits or legal trouble. If you’re having issues with the numbers or you’re just not feeling confident, be sure to consult an expert. It might cost you a little bit up front, but it’ll save you in the long run.
Bottom Line
Don’t save all of the work for tax season until the last minute, then find yourself scrambling when it hits. Get started with these year-end accounting tips now and stay organized throughout the year to make filing your taxes a breeze in 2017. Cheers!
