Hopefully you’re having a wonderful December with all of the holidays and parties this month. And if you’ve spent too much on gifts and decorations, never fear. Here are six ways to save money on your accounting and taxes. But hurry, you only have until year-end to cash in a few of these tips.
1. Check your profits
After adjustments, are your books going to show a profit this year? If so, you may want to try to increase business spending before year-end so you won’t have to pay as much in taxes. Consider accelerating larger expenditures to reduce your profits and therefore, your 2016 taxes.
If your business is cash-basis and you pay with a credit card, pay the card off before year-end so that it will fall into this year’s deductions.
There are many tips on business deductions, so check with us to get the full benefit.
2. Eliminate payroll headaches
If your payroll system is causing you pain and suffering, consider switching. Year-end is the best time because switching costs are lower and year-to-date amounts don’t have to be entered. You’ll still want your old system to generate January’s W-2s, but if you start writing 2017 paychecks out of a new system, it will give you a clean break.
And if you’re not sure what system to move to, we have answers.
3. Make January smoother
January is typically a bookkeeper’s busiest month of the year. Many tasks can be done early, such as checking to make sure your W-9s are current and ordering W-2 forms if they are needed. To avoid last-minute headaches, check with us to see what can be done early. It may help keep your accounting costs lower.
You may also want to consider automating more of your accounting system. Adding an app to your existing system may save you time and money in 2017.
4. Give to your favorite charity
Giving to your favorite charity may reduce your personal taxes if you plan to itemize your deductions on Schedule A of Form 1040.
There are many personal deductions that can help reduce your taxes, so check with us for options to minimize your tax payment.
5. Get ready for tax time
Start collecting the documents you need for tax time so they’ll be handy when you need them. You may be able to upload them to your accountant’s portal, or simply set them aside in a special drawer or folder.
Go through your receipts to be sure you communicate all your possible deductions. If you’ve had a major event, such as a move, new child, new marriage, or new job, be sure to mention it to us.
When all of the parties are over and the relatives have left, try these tips to save time and money on your taxes and your accounting in 2017.