Tax season is right around the corner, and if you don’t start prepping now, you may be scrambling to get everything together and ready by the time you need to file. But your tax prep doesn’t have to be time-consuming if you take proper precautions now to get ready in advance. 

Here are some small business tax preparation tips to complete by the end of the year.

Update Your Q4 Projections

You don’t want any surprises at the end of your fiscal year, so take the time now to update your projections for quarter four. You need to be able to know exactly how your business will make out by the end of the year, whether that means you are going to end up net positive or amass some debt. Once you have a better idea of what to expect, you can start to put away money to pay your expenses come tax time.

Don’t Wait on Making Large Investments

Are you in the market to make an upgrade or an improvement for your business? Completing the purchase before December 31 means you can claim the cash spent on your taxes, which then decreases your taxable income, thus saving you money. So don’t wait to make a big purchase, get your credit card out now!

Check Your Inventory

If there has been a drop in the market value of your inventory, you can claim an additional deduction. Analyze what you have on-site, and then determine if you can reduce your taxable income with creative deductions like uncollectable debt. 

Hire a Professional

Xquisite Tax is here for all of your small business tax needs. We will work hard for you so you don’t have to worry about the ins and outs of the tax season come April 15. When you get started with us, we’ll ensure your preparation efforts now reap the benefits in just a few months. Schedule an appointment today.