The last day of the year is a good time for businesses to take a few steps to ensure that they are prepared for tax season and to take advantage of any tax-saving opportunities. Some last-minute tax tips include:
Make charitable donations: Donating to a qualified charitable organization before the end of the year can provide a tax deduction for the business.
Pay any remaining bills: Paying outstanding bills before the end of the year can allow the business to claim the expenses on its current year's tax return.
Defer income: If the business is expecting to receive income in the next year, it may be able to defer that income until the following year by delaying invoices or closing deals after the end of the year.
Review tax laws and updates: Stay up to date on any changes to tax laws and updates that may affect the business. This can help the business to claim all eligible deductions and credits and to ensure that it is in compliance with the law.
Consider hiring a tax professional: If the business is unsure about how to prepare its tax return or if it wants to explore tax-saving strategies, it may be helpful to hire a tax professional, such as a certified public accountant (CPA) or an enrolled agent (EA).
By taking these steps, businesses can ensure that they are prepared for tax season and that they are taking advantage of all available tax-saving opportunities.