As the year wraps up, now’s the perfect time to refine your tax strategy. Year-end tax planning isn’t just another to-do—it’s your chance to optimize your business finances. By acting early, you can lower your tax bill, free up cash, and set your business up for growth in the new year.
We understand that every business is different- that’s why we create personalized plans tailored to your unique goals.
Focus on Tax Deductions and Credits
The end of the year is your last opportunity to claim deductions and credits that can reduce your taxes. Here are two key areas to explore:
- Business Expense Deductions: Look for costs like office supplies, software, and travel that you can deduct.
- Tax Credits: Consider credits for R&D, energy efficiency, or hiring. These can lead to big savings.
Adjust Income and Expenses
The timing of your income and expenses can also affect how much you owe:
- Accelerate Expenses: Pay for supplies or services now to boost your deductions.
- Manage Income: Avoiding huge swings in tax brackets year over year to smooth income over a longer period of time.
Maximize Depreciation
Year-end is a great time to review your assets. Using bonus depreciation or Section 179, you can write off the cost of equipment and technology purchases now, which reduces your taxable income.
Boost Retirement Contributions
Adding to retirement accounts like 401(k)s, SEP IRAs, Roth IRAs, or SIMPLE IRAs before year-end not only secures your future but also lowers your taxable income right away. It’s a win-win for your finances.
Ready to Start Tax Planning?
Time is running out to take advantage of these tax-saving opportunities. The sooner you act, the better prepared your business will be for the new year.
Need expert help? Contact Vesta today. Our team of advisors can craft a strategy that turns tax season into a strategic win for your business.
