To most people, the end of the year means holiday parties and spending time with friends and family. To business owners, this means tax planning.
Year-end tax planning traditionally tends to send people into a frenzy as they try to find all sorts of ways to pay less money to Uncle Sam. If you are a business owner, it's very likely that you've already left your accountant several voicemails and are scrambling to get your Quickbooks in order before January.
To make matters worse, your favorite financial and business websites offer all kinds of dubious advice on ways to cut your taxes.
These articles promise to get you the most bang for your buck and typically cite giving to charity and making some big purchase that qualifies as a business expense in order to ease how much you'll have to pay in taxes.
Truth be told, all the end-of-year tax planning hoopla can get a little out of hand. Aside from all the conflicting information out there, tax and employment laws are always changing (Affordable Care Act, anyone?), making the perfect recipe for one big tax mess and a whole lot of anxiety.
But, relax. Small business owners don't have to file any paperwork with the IRS nor pay any taxes by Dec. 31. Year-end tax planning has more to do with getting prepared for the April 15 deadline of the following year. We'll explain how to do it, and what, if anything, you can do to lower your tax burden.