Every small business owner’s main goal is to be as profitable as possible. You do that by maximizing revenue and minimizing cost. At year-end, a major thought in everyone’s mind is what are the best ways to reduce the year’s tax bill. There are many ways to reduce taxes, but they may not all make best sense in every situation when it comes to running a profitable business. Let us discuss some of the year-end tax tips for small businesses that make sense. We will start at the beginning.
Tip #1 Know the Rules
Tip #2 Know Whether You Should File Taxes on the “Cash Basis” or the “Accrual Basis”
Tip #3 Follow the 3D Rule
Tip #4 Only Spend on What is Deductible and Needed
Tip #6 Begin or Add to a Retirement Account
Tip #7 Make Charitable Contributions
Tip #8 Delay Invoicing
Tip #9 Seek Advice and Stay up to Date
Tax liability is complex. The Tax and Jobs Act has changed the tax landscape in many ways. The tips shared in this article are helpful, but remember to meet with your tax advisor or CPA to discuss your company’s specific needs. Reach out to our team for a free 30 minute consultation and to receive our regular updates.
About Lisa Palazzo
Lisa Palazzo is the Owner and CEO of Palazzo & Company, an tax and accounting firm based in Gulfport, Mississippi. Lisa Palazzo specializes in EXPAT taxes (knowledge earned first-hand from starting her business while working overseas) and working with small businesses. With clients in more than 20 countries, Palazzo has grown since 2001 to become a worldwide service provider specializing in small business accounting, bookkeeping and payroll services, business income tax preparation, and local/individual income tax preparation.