Which Business Tax Planning Strategies Will Save You Big Time in 2018?

Business tax planning strategies can be a good idea, but it’s crucial that you start planning now.

Nobody wants to get gouged on taxes. But all too often, business owners don’t think about their taxes until the end of the year, and then a mad scramble begins. Avoid all that hustle and bustle by planning in stages throughout the year. Business tax planning strategies can help ensure you pay just the right amount – and not a penny more. Here are a few tips to help you save big this year.

Strategy 1: Charitable Giving

We all know that charitable giving can help you save big come tax time, but it’s important to plan out this giving in advance. You can maximize matching gifts from other donors, which helps the organization you feel passionate about getting the most out of your generosity. There’s nothing worse than scrambling and trying to choose an organization to give to at the end of the year.

By planning now, you can also get some of your employees on board, perhaps by incentivizing their giving with a trip or catered lunch when they collectively reach a certain dollar amount. Bottom line: plan ahead to save big.

Strategy 2: Consider Quarterly Filing

While it’s tempting to put off filing your taxes until the end of the year, you may benefit from filing quarterly for a few reasons. First, it’s important to consider that when you wait until the end of the year, you’re essentially giving the government a 12 month, interest-free loan. You wouldn’t do that for any of your customers, so why do it for Uncle Sam?

By filing quarterly, you’ll be keeping a better eye on where your business is at concerning taxes. This will allow you to adjust your spending (either spending a bit more freely or increasing your charitable giving) so that you’re hitting the sweet spot when it comes to paying just enough to the IRS. After a few quarters, you’ll have a much better handle on your taxes and year-round finances.

Strategy 3: Bulk Up the Emergency Account

With a new President in office, it’s likely that there will be some major changes to tax laws in the coming years. Since no one can predict the future, it’s important that you ramp up your emergency savings account/rainy day fund, just in case your business gets hit hard. No one wants to have to scrimp and pinch from funds meant for something that will eventually bring you profit to save on taxes. Bulk up this fund now so that you can easily pay any taxes you owe later. Planning is key.

Planning the year out to come out on top with the IRS is challenging, and for many business owners, coming up with a business tax planning and strategies plan is difficult. That’s not your fault. You aren’t a trained tax professional, and no one expects you to be. It’s a good idea to call in the big guns when you want to attack your taxes head-on. Click or call a tax professional at Incompass Tax, Estate, and Business Solutions to discuss how to strategize your year.

Categories: BUSINESS TAX STRATEGIES.