Whether your Supporting Strategies payroll services franchise with had an excellent year or not, you could save a significant sum if you make the right decisions regarding your taxes before the year ends. It doesn’t matter if you’re going to file on time or are looking for an extension; it’s very vital that you get your books in proper order.
That being said, below are three important year-end tax tips you should consider:
- Get everything organized. The fourth quarter is an excellent time to ensure that you’ve got your tax-related issues and paperwork in order before the year ends. Aside from putting you in a good position as far as getting organized before the next filing season comes, you’d also be in a much better mindset to make crucial decisions that would most benefit your franchise business come tax season.
- Consider investing in a retirement plan for your business. Having a retirement plan would help you defer income taxes. Although you’re probably aware of 401ks and how you could defer between $18,000 and $24,000 each tax year, you also have other retirement plan options that would enable you to defer up to $100,000 every year.
- Conduct a tax projection right now to avoid surprises later on. Aside from evaluating your successes and needs-improvement areas from the past year, you should likewise perform a tax projection just to get a clear idea of where your business stands. You’ll never know; you might be able to defer income taxes to the next tax year, which could then reduce the taxes you need to pay this year.
Don’t forget to start your tax prep for next year. Begin by assessing the financial situation of your business and making sure that your accounting paperwork is all organized, accurate, and always updated. Look into strategies that you could implement upon starting the new year to help lower taxes for the following tax year, such as retirement plans or flexible spending accounts (FSA) for healthcare expenses.