| Small Business Tax Planning: The thought of having to | | | | your profits and your losses for the financial year. |
| pay taxes in the US can drive anyone up the gum | | | | Another thing, if there are any charitable contributions |
| tree. This is especially true to small business as they | | | | due for the forth coming year try to send them in |
| spend so much time trying to make a profit that the | | | | during the present year itself and don't forget to collect |
| thought of having to share it with the government is a | | | | receipts. |
| disheartening thought. But the taxman will be calling and | | | | 3. Purchases: |
| it will only pay to be ready. | | | | Try to envision any expenses you will have to make in |
| 1. Update your books: | | | | the first quarter of the new financial year. Make those |
| An important part of small business tax planning is | | | | purchases before the year ending. Pay all your bills |
| updating accounts. Some extra time must be | | | | early if cash flow permits. |
| dedicated to updating the account books on a regular | | | | 4. Write-offs: |
| basis. In fact, it is only good practice to take some time | | | | Depending on the kind of accounting, write off all the |
| out with the account and go through the books to | | | | damaged and useless goods in the business and |
| ensure there are no tweaks needed in order to ensure | | | | make provisions for contributions for retirement. |
| a smooth audit. | | | | When the accounting is complete, there will be a huge |
| 2. Defer Income: | | | | saving on taxes to be paid to the government and the |
| If you are to receive some money during the month of | | | | business will have a bit more cash to improve |
| December try to defer it to the first week of January. | | | | functioning. Since every cent counts, why not try to |
| This will give you a take holiday, so to speak, till the | | | | save a whole lot of them by applying the above |
| first week of April. All deferrals will depend greatly on | | | | practical tips for keeping your accounts updated? |