I hope that this was a successful year for your business and that you are congratulating yourself on all you’ve accomplished this year. We all deserve to celebrate how far you’ve come.
If you were profitable and you want to keep some of that profit in your business, here are some helpful tips for you to consider before the year is over:
- Are there any items you’ve been considering buying for your business? This could be extra supplies, furniture, or even equipment.
- Maybe you want to invest further in yourself in training classes, masterminds, etc. You can pay for them this year if you are a cash business and reduce your tax liability.
- Investing in your retirement. As sole proprietors or LLCs, you are eligible to set up your own 401k solo plans or SEP IRAs and invest some of your revenue for your future. The amounts can add up over time and also reduce your business taxes.
Even if you don’t want to reduce what is owed in business taxes, I’ll give you two more tips to think about:
- Do you want to take the profits out of your business for this year for yourself or reinvest them in the business? Profits are great to set aside for larger purchases down the road and avoid paying interest charges on credit cards or loans.
- If you don’t have a good organization system for all your business paperwork, start gathering some of it together sooner than later so you are not stressed about finding things at tax time or when you are wrapping up QuickBooks for year end.
If you need any help with determining your profitability as you grow your business, click the link below to book a call with me. I’d love to be on your team.