The holidays are coming soon and the end of 2013 will be here before we can turn around twice. The magical date of December 31, 2013 marks the difference between tax planning and tax preparation! Business owners have between now and then to react and plan for end of year deductions for the upcoming tax season or resolve to put their tax receipts together and pay the amount of taxes that are due.
Having a solid financial understanding of your profit and loss statement will allow you to react before the year end or realize what your tax liability may be come April 15, 2014. If you have had a stellar year and your balance sheet is showing a significant profit, congratulations on a job well done!
Now is the time for planning to help offset a significant tax liability. But….don’t delay, except for the IRA contribution, these deductions will expire at the end of 2013.
The following are three areas to consider:
NOW is the time to plan. Take some time and review your financials to determine if any course of action should be taken to close out 2013.