The end of the year is here; yes, and we, your Orlando accountants, know you would be busy with Christmas and holidays. But why not take some off your schedule and try out our tax saving tips? Come tax time, and you will be glad that you followed our advice. Implement our guidelines and you will be able to enjoy massive tax deductions.
Bear in mind that we have only provide with a quick review of what you can do, if you want the details, seek the services of a repute d accountant in Orlando , and he will be able to guide you more.
Shift your income… and your expenses as well
There are so many businesses that follow cash based accounting approach. This implies that you do not have to pay any taxes on the amounts you earn until you actually receive them. Similarly, until you spend an amount, there is no need for you to claim any tax write-off. If your business is also based on this sort of accounting, request your customers to delay their payments and do it after the first of January. Similarly, you should pay your bills prior to New Year. As you can see, just a simple shift in your cash flow can help you in saving on taxes.
Buy any equipment that you need now
Do you need any new equipment for your office? Maybe some supplies or a computer or something? Since you still have to buy them, why not do it right now rather than wait until the next year? According to the policies, you can claim write-offs for office related equipment, but this is only so if you do prior to December 31. Delay the process and your tax benefits will be rendered useless. Not good, right? Precisely why you should invest now and not later.
Fulfill monetary needs for your family members
Is your family in need of some money? Why not provide your son with allowance money for all the errands that he has done for you this month. Add him on the business payroll, and you will have to pay reduced taxes.
As long as you do this before January 1st, you can add family members on your company’s payroll as general contractors. Give them money, and you can classify it as a business expense. Your chosen accountant in Orlando can guide you more about this.
Surprise your employees
Employees are a vital part of your business, particularly the ones that put up a high level of performance. Why not reward them with a bonus and make them even more motivated? Once again, you will have to pay lesser amounts in taxes.
Plan a trip, and relate it to business
Holidays are the best time of the year to travel to places across the country and beyond the borders. Whether it is the Hawaii Islands you want to visit or the Eiffel Tower, plan a trip and enjoy your holidays even ore. Just be sure to schedule one dinner or meeting with a client, and all your holiday costs will be treated as business expenses, lowering your tax amount.
Planning Out Your Taxes
Filing tax returns is a time consuming and lengthy process. While at it, if you make even one mistake, IRS is going to trouble you a lot. So how do you ensure a hassle-free tax time? Follow our tips when you plan out your taxes, and you should not have any difficulties.
Hire a reputed tax accountant in Orlando
The best way to avoid tax trouble is to hire a skilled accountant in Orlando. Doing this will simplify the tax process to a large extent. Your chosen accountant will be able to guide you, provide you advice and help you fill out your tax forms. The end result is that you pay the lowest amount in taxes without paving way for any sort of trouble with the IRS.
While selecting an accountant in Orlando, just be sure that you opt for one who has enough experience with your type of business. Only then will he be able to aid you in gaining tax benefits.
Maintain your financial records on a daily basis
Proper maintenance of all your financial records prevents future trouble later on. There are so many accounting programs available that can help you in keeping a track of all your earnings and expenses. Make good use of these software applications, and things will be a lot easier when it is tax time.
If you have any trouble with using any of these programs, seek the services of a skilled accountant in Orlando.
Store all your receipts and invoices
Needless to say, you should store all your receipts and invoices as both soft copy and hard copy. Also make sure you have two or three backups of the entire data. Should the IRS ever question your expenses in the future, you will be able to provide them with evidence. Also make sure that your accounting program has a collection of all these receipts. You can either use scanned copies for the purpose or provide the receipts as images, depending on the program you use. For the invoices, there are plenty of programs that can produce soft copies with just a few clicks.
Record your mileage
No business can ever be accomplished unless there is a significant amount of travelling involved. The good thing is that you can use all these expenses as deductions later on, and you will have to pay lower amount in taxes. As such, be sure to jot down all of these so that the IRS does not create any issues later on.
Separate your business and personal expenses
Right from the first day of your business, you should keep your business and personal expenses separate. Not doing this would lead to trouble later on, and you may even have to face legal issues
Keep an eye out for tax credits
The IRS announces business tax credits every now and then. Your chosen accountant in Orlando can provide you the latest updates regarding these; be sure to use them if you want to a tax reduction.
If you need more information about our, Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.