As we move closer to year end tax deadlines, it’s important we explain some of the most beneficial tips to increase your tax deductions.
At MM Accounting and CFO Solutions we can help organize your books and prepare all necessary reports for your CPA. Below you can find the 4 most beneficial tax saving techniques for 2015.
Hire A Bookkeeper & Organize Your Books
Getting your books in order and accurate is the number one tax tip for all businesses and individuals. By having all of your expenses, deductions and financial statements correct and easily accessible, the process will always run smoother. Failing to keep your books current or waiting until last minute to run payroll, will end up costing you more money in the long run. Not to mention the unnecessary stress of scrambling to get all your finances settled.
Donating to charity is one of the best ways to receive a tax deduction. All contributions must have a receipt of payment regardless of the amount being donated. Another way to accelerate deductions is to spend money, by purchasing materials or services for your business you can maximize deductions. Start by making a list of all necessary items, narrow it down to the most important and start spending.
Setup Payroll Amount
Business owners of S-Corps must have their payroll completed by the end of each year. If you have a bookkeeper you can assign them to run payroll reports quarterly, however many businesses wait until the last minute. Waiting until the fourth quarter to complete your payroll can throw up a red flag for a possible audit. The best solution is to hire a bookkeeper keep track of payroll quarterly and adjust the payroll amount at the end of the year.
Create a Retirement Plan
If you start a retirement plan before December 31st, you can reduce taxable income for the year and enter the maximum amount of annual contributions. If you already have a retirement plan in place, enter the full amount necessary to reduce your taxable income.
All of these tax tips can make the end of year less costly which in turn reduces the stress of year end financial strains. We’ve helped many businesses get their books in order as well as set up our clients to avoid a repeat of the books not being in order.
By using a bookkeeper throughout the year you’ll no longer have to worry about getting everything in order last minute. Hiring a bookkeeper will provide a savings over time and you will not have to worry about paying a lump sum of service fees up front.
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