Plan Ahead: Tax rates will not be going up next year and will be going down a bit for many businesses, so you can probably maximize deductions in the current year and maximize income in the coming year.
Retirement Plan:
Make your contributions to your retirement plan. If you don’t have one, set one up. You may not have to actually fund it until your taxes are due. This will not only provide for your future, but could reduce your tax bill for the current year.
The new 2% reduction in the payroll tax will reduce everyone’s tax bill next year. You may want to encourage your employees to open a personal IRA with this windfall so they can start saving for their own retirement.
Take a Break: Spend some time doing the things you love with friends and family. You’ll return to work refreshed and ready to go.
Crunch Your Numbers: You have another year’s worth of financial information that you can quickly summarize and review in Numbers Cruncher. Do a quick update of your numbers, and you’ll be ready to confidently start the new year knowing that your prices are where you need them to be.
Remember that Numbers Cruncher presents a real snap shot of your business. Most accountants do not provide this type of information that you need to set your profitable prices.
Equipment Expensing: You can treat the purchase of up to $500,000 in equipment as an expense for 2010. This is an increase from the $250,000 limit in 2009. This can make the purchase of new or used equipment much more economical by accelerating your deduction into one year. Off the shelf software, like Numbers Cruncher and NSPG Flat Rate software is eligible for first year expensing.
Loss Carryback: If your business had a loss for this very difficult year, talk to your accountant about taking advantage of the often confusing IRS rules on deducting this year’s losses from previous years’ profits. If you don’t want to get back some of the taxes you already paid, you may be able to reduce what you owe on future profits. Be sure to get sound advice before using this tax technique.
Donate Now: If your business is not a C corporation, any donations you make now will probably reduce this year’s tax bill on any profits earned. Remember that there is no phase out of itemized deductions for high income earners this year.
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Contact your own advisers for the best business and financial advise for your own situation. A little extra effort now can save money and help build a better future for you and your business.