Navigate Tax Season With These Tips

By: NewsUSA

Tax season tends to be people’s least favorite time of the year, which is only compounded for small businesses. Don’t live in fear under the ever-nearing tax thundercloud, make sure your business is prepared to meet the daunting season. Here are five basic rules to keep your business ahead of taxes season.

1. Regularly update accounting records. Knowing the intricacies of your company’s financial situation throughout the year makes tax season much less intimidating. Plus, if all records are up-to-date and exact, your accountant has more time to spend on finding ways to save the business money instead of organizing information.

2. Triple check your tax bracket. Marginal tax rate analyses help guarantee that you and your small business aren’t needlessly pushed into a higher tax bracket. This is especially beneficial if your business is teetering on the edge this year. Recognize income when your tax bracket is lower; pay deductible expenses when your tax bracket is higher.

3. Take inventory of supplies, equipment and other potential write-offs. Equipment might be damaged or simply too outdated to maintain productivity. Replacing office supplies and obsolete assets before the new year provides the company with added deductions. For costly technology, confer with your accountant to see if an immediate or depreciable write-off is preferable. Financial planners like On Call Accountants can help maximize deductions and increase expenses to prevent owing exorbitant fees. Learn more about possible deductions at

4. Contribute to a retirement plan. If you haven’t set a retirement plan up yet, do it before the year-end to reduce this year’s income. Qualified retirement plans afford tax deductions for all contributions. Find an appropriate plan for your business and explore contribution limits. A retirement savings opportunity will also garner loyalty among employees.

5. Look into business tax credits. Small businesses may be eligible for numerous tax credits, as listed on the IRS website. Examples of possible credits are Low-Income Housing, Credit for Increasing Research Activities, Disabled Access Credit and Qualified Plug-in Electric and Electric Vehicle Credit.

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