Yeah, I know. You’re probably just trying to get through the current tax season.
However, one of the best things you can do for your business is to plan ahead for the new year. You should be engaged in tax planning year-round, not just at the beginning of the year as you frantically try to figure out what you can deduct.
Instead, you should be thinking ahead and making sure that you are
Business tax planning can help you save money in the long run. Here are four moves to consider for the coming year:
1. Buy Equipment
Have you been looking to buy equipment? If you need something, plan to buy it this coming year. You can claim a tax deduction when you purchase equipment specifically for use with your business.
If you have been making do with sub-par equipment, or if you’re trying to expand your business and you need more supplies, now might be the time.
It’s a simple thing, but my office chair has finally broken down. I’m ready for a new one, and part of my tax planning for this year is buying a new chair.
Whether it’s getting a new computer or whether you need to get new stations for your employees, buying new equipment can be a solid tax planning move. Just make sure you keep good records and save the receipts.
2. Donate to Charity
Are you in a position where you want to give back? Donating to charity can be a great way to do good for a cause you believe in and build your reputation in the community. Plus, you can also receive a tax break.
Make sure that the charity is a 501(3)(c) organization and tax-deductible. You can donate to other organizations, but you might not get the tax deduction. It can still be worth it to give to a cause that isn’t tax-deductible, but it won’t be part of your business tax planning.
Don’t forget about retirement contributions. This is not just about good business tax planning now; it can also make a big difference in your long-term financial security. You don’t want to neglect your retirement. Make contributions, and you can get a tax deduction.
That also include when you set up a benefits program for your employees. Your company’s contributions come with a tax break. Talk with a professional who can help you figure out how to offer benefits to your employees for a tax break.
This is a great way to invest in your business because you are more likely to attract high-quality people when you offer benefits.
4. Grow Your Business
Finally, put some money into activities that will help grow your business. Put money into advertising and marketing. Consider outsourcing some of your mundane tasks.
Think about some of the things you do that could be done by someone else or that will ultimately help you get more eyeballs in front of your business.
When you spend money on business activities, you can take a tax deduction. Plus, your return on investment can be very high when you grow your business this way. You spend a little money to make a lot more later.
Look at different ways you can grow your business with a little infusion of cash. You’ll reap big rewards in the future and get a jump on your business tax planning now.