Small Business Tax Planning: 3 Moves to Make Before Year-End

As a small business owner, tax season is always on your mind. However, taking a few strategic steps before December 31st can help reduce your tax liability and save you money.

Here are three important tax planning tips:

• Maximize Retirement Contributions: Contributing to a retirement plan like a SEP IRA or a Solo 401(k) not only helps secure your financial future but also reduces your taxable income for the year. This is one of the most effective ways to lower your tax bill.

• Leverage All Possible Deductions: Make sure you've tracked all eligible business expenses. This includes everything from office supplies and travel to professional development and software subscriptions. Don't leave any money on the table.

• Prepay for Next Year's Expenses: If you use a cash-basis accounting method, you might be able to prepay for some expenses, such as insurance premiums or rent, to claim the deduction this year. This can be a great way to decrease your current year's taxable income.

Please feel free to reach out if I can be of help! mdaviscpb@qbocleanups.com