It may only be October, and your year-end tax duties may be far from your mind. However, failing to consider your taxes, and doing what you need to now is a critical issue for many small businesses. If you have not already considered what you can do this month, it would be a wise choice to do so. We’ve compiled a list of the top reasons October is an important tax month, and what you can do to take advantage and improve your taxes’ state of affairs.
Prepare For the Inevitable
Time is a very limited commodity for most small business owners. If you are like most, you rarely have a large chunk of time to spend on your taxes. Instead, you may have small windows that are free periodically, and using them to prepare for your tax filing, and organizing your finances is an excellent choice. Starting now, before the hectic holiday season of November and December, you can have a jump start that will reduce or eliminate that last-minute frantic tax preparation. Creating reports, organizing receipts, searching for deductions, and any other financial projects you have been putting off can be done now, and protect you from a massive headache as the filing deadline nears.
Increase Your Expenses
If your small business was fortunate enough to have a great year financially, now is the perfect time to invest some of the money you’ve earned to create deductions, lower your income, and reduce your tax liability. There is never a shortage of things available to spend money on. Furthermore, we often put off expenses as long as possible. In October, it is time to stop putting it off and use your gains to purchase or upgrade equipment, start an advertising campaign, or if it is possible, even pay your vendors now, instead of waiting until January. Investing in your business is a smart move. It can help to pave the way for a brighter future, and have a significant impact on your yearly tax contribution.
Consider Reducing Revenue
The thought of seeking ways to lower your company’s revenue in November and December may seem ridiculous. You work so hard to increase income, that attempting to reduce it goes against every business fiber in your body. However, if you can decrease the amount of revenue you are taking in, or if you can delay payments until the New Year, it may make a significant difference in your tax responsibility. A professional tax specialist can assist you in determining how much you need to reduce your revenue to make the largest impact.
Landwehr Financial Solutions Can Help
The staff at Landwehr Financial Solutions can be a great resource for financial and tax services to all our clients, ensuring the highest professional standards and quality services available. We offer a broad range of services to assist you with any financial concerns or questions. Our financial coaching services may be just what you need to get ahead, plan for the future, or streamline your processes. At Landwehr Financial Solutions, the particular needs of every client are met through our holistic approach. Contact us today for more information on the many services we offer our clients in St. Cloud MN area.