Small Business Taxes: What You Need to Know Before Year-End

Ah, year-end—the season of holiday parties, gift-giving, and, if you’re a small business owner, that delightful task of preparing for tax season. While it might not be as fun as sipping eggnog by the fire, getting your taxes in order now can save you time, stress, and money down the road. Plus, wouldn’t it feel great to start the new year knowing you’ve got this sorted? Let’s dive into what you need to know.

1. Give Your Financial Statements Some Love

Your financial statements are like the cheat sheet to your business’s health. Before you close the books on this year:

• Double-check that all income and expenses are accurately recorded. Yes, even that      last-minute Amazon order for office supplies!
• Look for any “huh, that’s weird” moments—discrepancies that might need fixing.
• Spot potential deductions like marketing expenses, mileage, or even that extra desk you bought for your home office.

Accurate records not only make tax filing a breeze but also keep you in good shape if the tax man ever comes knocking.

2. Snag Those Deductions and Credits

Deductions and credits are like the coupon codes of tax season—don’t leave money on the table! Some popular ones for small business owners include:

• Home Office Deduction: If your “commute” is from your coffee maker to your desk, this might apply.
• Section 179 Deduction: Write off the full cost of qualifying equipment or software you started using this year.
• Retirement Contributions: Saving for your future while cutting your taxes? Win-win.

A good tax professional can help you uncover hidden gems you might otherwise miss. Think of them as your tax treasure hunter.

3. Check in on Your Estimated Taxes

Missing estimated tax payments can lead to penalties, and nobody likes those. (They’re like late fees for grown-ups.) Double-check that you’re up to date for 2024, and if you’re not sure how much to pay, your tax pro can help.

4. Treat Your Business to a Little Holiday Shopping

If your business had a good year, now’s the time to consider some strategic purchases:

• A shiny new laptop? That’s an investment you can likely deduct.
• Stocking up on supplies? The future you will thank you.
• Paying for services or subscriptions in advance? Totally counts.

These purchases can help reduce your taxable income, making it a win-win for your business and your accountant.

5. Get Your Ducks (and Forms) in a Row

Before you know it, January 31 will roll around, and with it comes the deadline for issuing:

• W-2s for employees.
• 1099-NECs for independent contractors you paid $600 or more.

Get a head start by ensuring your records are accurate and up to date. Future-you will be so relieved.

6. Channel Your Inner Organizer

Receipts, invoices, and records—oh my! Start sorting them now so you’re not wading through a sea of paperwork at midnight in April. Digital tools like accounting software can be a lifesaver here (and your filing cabinet will breathe a sigh of relief).

7. Book a Date with Your Tax Professional

Think of your tax professional as your co-pilot for navigating year-end planning. They can help you:

• Spot strategies to lower your tax bill.
• Decode any recent changes in tax laws.
• Avoid compliance nightmares.

Pro tip: Don’t wait until April. Accountants get busy, and your tax questions deserve more than a rushed response.

Let Us Help You Simplify the Process

At Dolev Law, LLC, we understand that year-end planning isn’t just about crunching numbers—it’s about making smart decisions that protect and grow your business. Whether it’s reviewing contracts, helping you navigate legal compliance, or offering strategic advice tailored to your goals, we’re here to help.

If you’re feeling overwhelmed or unsure where to start, reach out today to schedule a consultation. We’ll help you untangle the complexities so you can focus on what you do best—running your business with confidence.

Click Here For Free Consult

This article is a service of Dolev Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

Disclaimer

This blog is for informational purposes only and does not constitute legal, financial, or tax advice. For specific advice tailored to your business, please consult a qualified professional.