It’s a good strategy to know where your company stands financially at all times, this means regarding your tax liability too. What purchases you make and how you handle your money can have either a positive or negative affect on your year end tax liability. Before you make a large financial decision, talk it over with your tax accountant first, there may be different ways to handle the same financial situation.
Update your accounting frequently and have meetings with your tax consultant regarding your year end tax strategies. Your tax accountant can guide your company steps in order to save you the most money on your company tax return.
Your accountant will be able to look at your profit and loss and tell you if it’s a good idea to defer some of your income into the next tax year. Deferring your income will lower your tax liability for the current year. If you had a boom year, deferring some income into the next year could save your company a bundle in taxes. Charitable contributions will also help you lower your tax liability and as a bonus, you will be helping others.
Among the other things you can do to reduce your liability is stock up on office supplies and machines, and pay your bills ahead so you can count that against the current year taxes. Your tax accountant will be able to give you many invaluable ideas to reduce your yearly tax liability.