Tax Planning for Small Businesses: Top 5 Evergreen Strategies

Small business owners may still be trying to catch up with all the ever changing tax laws. As we approach the year end, it is important to plan and take the necessary actions to minimize your tax liability. The good news is that there are a number of strategies that small businesses can use to reduce their taxes. Some of these strategies include deferring income, accelerating deductions, and using tax-advantaged retirement plans. Hiring the right tax planner can be extremely beneficial in preparing your tax strategies for your small business. Read on, to learn more!

 5 Tax Planning Strategies For Your Small Business

Below we have outlined five of the most effective strategies for tax planning:


1. Deferring Income:
Deferring income into the following year can help to reduce your tax liability. This can be done by postponing the date that you send out invoices or delaying the date that you recognize revenue. 


2. Accelerating Deductions:
Accelerating deductions into the current year can also help to reduce your taxes. This can be done by prepaying expenses or making capital expenditures. 


3. Using Tax-Advantaged Retirement Plans:
Contributing to a tax-advantaged retirement plan is another way to save on taxes. This is because the contributions are made with pre-tax dollars and they grow tax-deferred. 


4. Taking Advantage of Credits and Deductions:
There are a number of credits and deductions that small businesses can take advantage of to reduce their taxes. These include the Small Business Health Care Tax Credit, the Energy Efficiency Tax Credit, and the Research and Development Tax Credit. 


5. Hiring a Professional:
Hiring a professional tax planner to help with your taxes can be a great way to save on your taxes in the future. A tax planner can help you to take advantage of all of the deductions and credits that you are entitled to.

How to Get Started with Tax Planning?

If you are behind on your tax planning, there are a few things you can do to maximize savings—


  • Gather all of the necessary documentation. This includes your tax return from the previous year, your current income statements, and your expense reports. 


  • Create a budget. This will help you to determine how much money you can afford to set aside for taxes. 


  • Implementation. Once you have gathered all of the necessary documentation and created a budget, you can implement the tax planning strategies that will work best for your business.

The Benefits of Professional Tax Planning

Professional tax planning offers a number of benefits for small businesses.


  • Helps you to save money on your taxes—By taking advantage of planning strategies you can minimize your tax liability and keep more of your hard-earned money. 


  • Tax planning can help you to avoid penalties and interest. If you fail to pay your taxes on time, you may be subject to late payment penalties and interest charges. By planning ahead, you can ensure that you have the money available to pay your taxes when they are due. 


  • Tax planning can help you reduce stress. The process of preparing and filing your taxes can be stressful, especially if you are not prepared. By taking the time to plan ahead, you can make the process much easier on your business.

Closing Summary

Tax planning is an important part of running a small business. By taking the time to plan, you will notice a major difference in savings on your taxes. Call Us for professional tax planning and tax preparation services.

Professional Image of Marc Boulanger, CPA

Marc Boulanger


Marc views his accounting business as an extension of his family. And while he holds a Bachelor of Arts in Business Administration and Accounting and a Masters of Science in Accounting, he values traveling around the country with his wife of 30 years and 5 kids, Marc learned that communication is the key to effective team work.


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