Did you end up falling a bit behind this year with your tax planning and bookkeeping? No worries—2021 presents an opportunity for a fresh start. With only a little bit of time left to go in the 2020 tax year, the time is now for you to make some New Year’s Resolutions for the next year’s tax planning to give you some concrete goals to stick to throughout 2021.
Here are some resolutions for you and your business to consider.
- Develop a relationship with a bookkeeping or tax prep professional: As the owner of a small business, you have enoughon your plate already without having to deal with all of the minutiae that comes with bookkeeping and tax prep. Working with an outsourced professional takes this off your plate and allows you to focus on more important aspects of your business, all whileensuring better, more accurate results. From early on in the year, make it a priority to begin working with an outsourced professional in these areas.
- Set goals: Entering 2021, make it a priority to have financial and tax planning goals for the year, so at the end of the year it’s easier for you to track your successes and failures and the opportunities you have for future growth.
- Stay organized: Rather than tossing all your receipts into a box and trying to scramble to get them organized at the end of theyear, develop a system early on to stay organized so it becomes easier for you to track business expenses and potential deduction opportunities. Keep your paper receipts, but also create digital copies and make an easily navigable digital filing system for those receipts so you have backups.
- Find more deductions: You’d be amazed at how many business owners qualify for a variety of tax credits and deductions but do not even realize it. Working with a professional will help you uncover these opportunities, but in general you should make it a point to maximize the savings you can get from these deductions so you can save the money to reinvest in your business.
- Take advantage of depreciation: One example of a deduction that can be particularly useful for certain types of businesses is depreciation. If you purchased business equipment, you can get deductions for depreciation over multiple years. Strategic planning of when you will purchase certain types of business equipment not only will benefit your business with regard to how that equipment will improve your operations, but also with regard to your taxes.
Interested in getting more tips for some tax-related New Year’s Resolutions you can stick to for your small business in the coming year? Contact us today at MCG Solutions!