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The Taxman Cometh: Advice for small businesses

tax advice

Efficiency is the name of the game at Agents of Efficiency (obviously) so we’re making it even more efficient for you to improve your business. Every week, we sort through all the boring stuff to bring you the best tips from the wide world of the web. The taxman cometh, so for this week’s #2tips4tues let’s take a look at how to prepare.

Accelerate or defer

Darla Mercado at CNCB advises: “Depending on how your clients pay, you may be able to defer receipt of income this year, which could help you save on taxes. Many sole proprietors use cash basis accounting, meaning you report income when you receive payment. Consider scheduling your billing so that clients pay you in early 2017 for work you performed in late 2016. This way, you receive the money in the new year.”

Give to charity

Anthony Saladino writes at Forbes that you can help yourself by helping others: “Social responsibility creates a positive association surrounding your brand. Research that over 90% of consumers are more likely to support businesses that play a charitable role in the community. Year-end success and surplus provide great opportunities to give back to others in need. First, you’ll want to choose an eligible charity and make a donation. It’s important to understand that restrictions govern which types of charities are deductible. For example, time volunteered is not a tax-deductible service, but any supplies purchased and used for the project can very well be deducted.”