Year-end tax moves for small business owners, before December 31

Most of the tax choices a small business has are made in the last two months of the year. These are the five we ask about:

1. Retirement plan contributions

Some plans must be opened by December 31 even if the contribution is made later. If you want one for this year, call us in November, not April.

2. Equipment and vehicles

Buying equipment can change this year’s bill, but only if the item is bought and in use by the end of the year. Don’t buy something you don’t need to save tax: the spending is real, the saving is partial.

3. Your fourth estimated payment

If you pay estimates, the last one is due in January. A short year-end check shows whether you’ve paid too little or too much.

4. Your books

A return is only as good as the books under it. Reconcile your accounts through November, and ask your bookkeeper for a draft profit and loss.

5. Billing and expenses near the line

When income and expenses count depends on your accounting method. Ask before you hold an invoice until January.

We’re holding year-end check-up appointments through December 18, and Naomi is leading a free workshop on November 18.

This is general information, not tax advice for your own situation. A short call with us can tell you what applies to you.