The weeks before year-end are the best time to look at your tax position, because many decisions can still change the outcome. Here are five areas worth reviewing with your accountant.
1. Review your year-to-date profit
Compare your books with last year and with your forecast. Knowing the likely result early gives you room to plan instead of react.
2. Time income and expenses
Depending on your accounting method, the timing of invoices and purchases can shift income between years. Discuss what makes sense for your situation.
3. Check equipment purchases
If you plan to buy equipment or vehicles, ask how depreciation rules apply before you commit.
4. Revisit retirement contributions
Contributions to a business or personal retirement plan may reduce taxable income. Deadlines and limits vary by plan type.
5. Tidy up your books
Reconcile accounts, categorize open transactions and gather receipts now. Clean books make filing faster and cheaper.
This article is general information, not tax advice. Please speak with a qualified professional about your own circumstances.