Year-End Tax Planning Tips for Small Business Success: Prepare, Deduct, and Give Back

Now that we're approaching the conclusion of 2017, preparations are in full swing for the holidays. But even while consumers are shopping and decking the halls and you’re busy trying to keep up with staffing, scheduling, and stocking your own shelves, take a minute and also think about what is soon to come: tax season.

Yes, can you believe it? Tax season is literally right around the corner.

Preparing for tax season may seem like another headache in the midst of the holiday season, but if you start planning now, your work load by the time the new year rolls around will be quite a bit easier.

Plus, if you have any business needs that need to be taken care of (read: purchases, donations, or equipment that could count towards your overall deductions for this year), it is best to get those items crossed off your list and purchased before the clock strikes midnight on December 31, 2017.

Give these 3 year-end tax tips a go to truly set yourself up for success in 2018.

1. Take stock. On a scale of 1 to 10, how did business unfold for you this year?

Ask yourself this: what did your business really look like in 2017? Before the ball drops at midnight, hopefully you already had some understanding of just how your business performed this last year. Once 2018 hits—unless you’ve deferred your payments to January—you’ll be taxed on the money you made in the calendar year of 2017. This kind of information will help you make your game plan for 2018.

If your marketing efforts didn’t quite pay off in 2017, will you want to try another approach in 2018? If you’re hoping to understand how to get your images perfectly proportioned for Instagram stories and how to increase engagement on Facebook, will you need to set aside time for web-based social media tutorials or will you need to hire someone who can give you some extra assistance in-person? Whatever it is—marketing, advertising, staffing, invoicing, shipping concerns, budget guidelines—you will want to have a review of all of your reports with your bookkeeper or accountant to make sure nothing comes as much of a surprise. Once you have a handle on just how things went this year, you’ll be able to set a game plan in action and be ready to start the new year off on the right foot.

2. Take inventory. Capitalize on those deductions for your business.

Now is also the time to begin investigating how you can maximize your deductions. Hopefully you’ve been tracking expenditures, mileage, and any other expenses throughout the year that were related to your business and its overall success. Now is also the appropriate time to ask, how did your equipment fare over the past year? Are you in need of any additional pieces of equipment, technology, or are you running low on any business supplies? These are all good questions to ask yourself. If there are things you could stock up on now, do so. These kind of purchases and donations will add to your tally of overall deductions.

Side note: Another way to contribute to your overall deductions is to contribute to a retirement account. Were you able to max out your contributions this year?

3. ‘Tis the season for charitable giving

Giving back to charities not only helps your total deductions, but also is a great way to show your customers that you care. After all, in doing business, it is possible to do business with a bit of heart, especially during the holidays. Monetary donations are not the only thing that fits the bill when it comes to charitable giving. Donating clothing, toys, and other goods can make a difference, too. Ensure that before you walk away, though, you have a receipt and the proper documentation that says you are receiving the fair market value for your donated goods.

Tackling these three items on your end-of-year to-do list will make life easier in 2018 for your books, your budget, and your business.