Saving On Your Business Taxes

Are you a business owner and looking for ways to save on your business taxes? 

Maybe you’ve been so busy building the business you didn’t even realize that your profit has doubled! You’re starting to panic. It’s December and you know a tax bill is going to come along with that.

Maybe you’re even thinking about buying equipment you don’t really need just in order to avoid that tax bill. 

We have great news for you!

You can simply prepay some of the expenses that you’re going to pay anyway and lower your tax bill. 

This is called the 12-Month Rule for Prepaid Expenses. The IRS allows certain businesses to deduct expenses that you pay in advance. 

Before you go mailing checks off and prepaying expenses, we want to make sure that you do not expose yourself to unnecessary risk. You want to make sure that the people or companies you are sending your money to, do not take it and run. 

Good expenses to prepay:

• Rent is always a really good one.

• Utilities

• Perhaps even training and education

So just think about those expenses prior to prepaying them. 

Where we see this most helpful is for business owners who need to lower their taxable income in order to qualify for certain tax credits. The second is for those business owners that are trying to save a down payment for a business building that they plan on purchasing over the next year.

Saving on your business taxes will lower your taxable income, which means you lower your tax bill and then you hold on to more cash that will ultimately help with the down payment.

We know all of this can be confusing and stressful.

That’s why we’ve made it our mission to help you unravel it all.

From confusion to clarity, Accountabilities has you covered.