It’s not the end of the world, but it is the end of 2014. Before you break out the champagne this New Year’s Eve, devote some time to your finances, in order to ease your pain come tax time. The following are a few important tips to keep in mind.
Establish Your Retirement Plans
As an entrepreneur, retirement funding is often overlooked. When your finances are tight, it might be appealing to pass on putting money towards your retirement plan. However, we caution you to avoid that at all costs because saving for the future can help come tax time. Self-employed people can deduct their premiums for insurance, as well as contributions to retirement accounts. This is excellent for reducing tax liability.
Defer Income
Often times, entrepreneurs find it difficult to get clients to pay their bills on time. However, we have good news. If your taxable income is high this year, you can extend the clients billing due date to a later period. In return, this may alleviate your tax burden. Likewise, you may opt to delay sending out invoices for year-end jobs until late December or early 2015. Bottom line, choose to be paid later and make purchases earlier, which leads into our next tip for you.
Accelerate Expenses
Are you planning on making a few purchases for your business come early January? Well, think about purchasing them before the year ends instead. Simply put, now is a great time to buy! By doing this, you are able increase your deductions for 2014. We suggest paying off bills/debts or giving out employee bonuses.
As an entrepreneur, your relationship with Uncle Sam differs from those who are not self-employed, but no need to fear. With the right planning, tax time doesn’t have to give you a headache. William Wolske, CPA wants to be sure you are making good money decisions. Schedule your free consultation today to receive assistance when it comes to handling your finances and money saving goals. Contact our offices at 843.706.9644 or visit https://blufftoncpa.net/contact-us/. We’ll go through your financial situation together, so you can have a financially happy tax season!