Four Year-End Tax Saving And Smart Planning Tips For Small Business Owners
Your business is on track for another year of double-digit growth, and you have a more-than-healthy cash flow in your corporate bank account. Nicely done! But when it comes to year-end tax planning, you may have to pay Uncle Sam more than your fair share if you aren’t taking the right steps. Not only that, but you’ll waste a precious opportunity to take advantage of discount growth options for 2017.
Over the years as a small business owner, I’ve learned how to take advantage of my annual business growth with smart tax planning. Below are a few actionable steps you can take to cut down your year-end tax payment and benefit your business.
1. Review all products/services your business pays for on a monthly basis.
An easy way to trim dollars off your taxes is by contacting your providers to negotiate a lower total payment instead of 12 monthly payments. Pre-paying for the entire year of 2017 may save you a sizable chunk of change in the long run. Just be sure to determine ahead of time that it’s a valuable service or product for your business before committing to an entire year’s worth of payments.
This is also a good time to take a look at all of the goods and services your company pays for on a monthly basis and cancel any subscriptions that are no longer useful. Remember that business products and services are all tax deductible, so you’ll receive actual tax dollar savings on your adjusted gross income of 30-to-45 cents on each dollar spent.
2. Invest in marketing.
Spend your year-end surplus on marketing and advertising. In today’s digital age, we’re constantly being introduced to new and abstract marketing techniques. Take advantage of these creative tactics to reach new demographics and market your business effectively and inexpensively. Test out new marketing strategies in the third quarter so that you can pre-pay a larger commitment for the following year if an ad is successful.
Again, use this as an opportunity to review your existing marketing programs from a monthly budget standpoint and see if you can negotiate a lower upfront/total payment. Get a jumpstart and pre-pay any current marketing/advertising plans that are working for the entire year of 2017. Keep in mind that advertising and marketing spend is all tax-deductible, so you will receive actual tax dollar savings on this as well.
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