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Mid-Year Tune-Up?

Posted by Matt Evans Posted on Dec 12 2014

With the filing season in the rear view mirror, now is the time to think about giving your business a little post-tax season tweaking. The benefit is this, it will make next year's taxes easier and more likely that you will improve your financial standing.

Day-to-day accounting. It can be tough to keep your financial records current. If you are behind the past several months, now is the time to get caught up. If this is the weak link in your business we can help you get current before the lag in accounting starts to hamper your business.

By reconciling your business accounts you will find out if you are current on your expenses and deposits. This investment of time will give you the information you need to evaluate what changes are needed to make your business more profitable.

Retirement plans. If you do not have a retirement plan, consider starting a retirement plan to lower your income taxes and provide future income. This is the best tax deduction out there. You get a tax deduction by funding for your retirement. There are several different types of plans and they all have different start up dates. There are the IRA, Roth-IRA, Simple IRA, SEP-IRA, Profit Sharing, 401(k), to name just a few.

Adjust estimated tax payments or withholdings. If you had a owed a lot of taxes or had a large refund, you may want to adjust your estimated tax payments or withholdings. The benefit is that you will minimize or eliminate any penalties that may be assessed for underpayment of taxes. As the year moves on, monitor your bottom line and adjust your tax estimates accordingly.

Employee benefits. If you have employees consider providing them with tax-free fringe benefits while your business reaps tax savings as well. Adding benefits such as health insurance, group term life insurance, or a cafeteria plan saves your business money. The benefit comes in he form of happier employees which will be more productive and you save money because you are not required to pay the employer’s share of payroll taxes (Social Security and Medicare) on those benefits.

It is always beneficial to tweak your business finances and tax situation now, rather than waiting at the end of the year. By being engaged now, you benefit from valuable tax savings and other opportunities to improve your financial picture.

This blog is published to provide you with an informative summary of current business, financial, and tax planning opportunities.  Do not apply this general information to your specific situation without additional details.  Be aware that the tax laws contain varying effective dates and numerous limitations and exceptions that can not be summarized easily.  For details and guidance in applying the tax rules to your specific circumstances, please contact us.