For business owners, minimizing taxation is one of the easiest ways to increase overall net profits for your business. Here is a year-end checklist to help make sure you are on track!
1. Be Proactive- This will allow you to take advantage of tax planning and tax strategizing. Reach out to your accountant for year-end tax planning, or for help to get your businesses finances in order before the year concludes. Remember, your time is money. Ask your accountant what can be improved by outsourcing your accounting or doing regular reviews.
2. Take Advantage of Tax Strategizing- Discuss with your accountant whether your business would benefit by making any year-end purchases, and how to strategize timing of income and deductions so that you can fully take advantage of every tax savings available to you.
3.Other Deductions- Determine with your accountant whether home office deductions, mileage deductions, self-employed health insurance, or any other deductions apply.
4.Retirement- Start or contribute to retirement accounts. Would you rather be writing yourself a check to your retirement account or writing a check to pay taxes? There are several tax benefits available for self-employed individuals regarding starting or contributing to retirement plans.
5. Take Advantage of Relief & Deductions Available- Make sure you take advantage of all deductions and Covid-19 relief items available to business owners, as well as maximizing items such as the pass-through qualified business deduction.