Tax-year-end planning tips for small businesses
Many people dread the end of the tax year because it increases their workload and extends their working hours. However, it’s also an ideal time to get your finances in order and implement legal strategies to reduce tax. Small businesses are often strapped for cash and every effort should be taken to reduce expenses. There are many legal ways for business owners to reduce the amount of tax owed to the government.
QuickBooks accounting software can help business owners in their tax-year-end planning and provide you with the information necessary to implement the tax-year-end planning tips below. Before you can effectively reduce your taxes, you need to get your finances in order. QuickBooks offers business owners the necessary tools to document the financial aspects of their business, including income, expenses, payroll and salary deductions.
Peruse our selection of accounting software, including QuickBooks Pro, QuickBooks SimpleStart and QuickBooks Premier, to find an accounting system that suits the requirements of your business.
Five tax-year-end planning tips
- Take a close look at your accounting records from the previous year
The end of the financial year is an ideal time to get your finances in order and gives you an opportunity to start the new period with a clean slate. Those who have neglected their accounting processes may find it more difficult than those who diligently record every transaction. However, every business owner should take the time to look back at their bookkeeping records over the previous period to check for discrepancies and inconsistencies.
- Defer your incomes into the following financial period
Incomes received before the cut-off date of the financial year will incur tax for that financial period. In order to delay paying tax on this income, declare them at the beginning of the following financial period if possible. While this is a frugal decision for many small businesses, it is important to check whether tax rates will be increasing in the near future. It can be to your detriment to hold off declaring income only to declare it at a higher tax rate. - Make important purchases before the end of the financial period
Another useful tip for tax-year-end planning is to incur as many expenses as are realistically possible. Pay subscriptions and bills early, pay your suppliers outstanding debt, replace any faulty equipment and restock your stationary. Doing this will increase your deductions, thereby reducing the perceived profit of your business until the next financial period.
Tax-year-end planning with QuickBooks accounting software
Tax-year-end planning is an important process that can save you and your business a significant amount of money. QuickBooks accounting software is an effective tool for small businesses and can help you to organise your finances in time for the end of the next financial period.
Choose from our range of accounting software solutions or contact us for advice on which of QuickBooks’ financial products will best help you with your tax-year-end planning as well as your everyday bookkeeping.
QuickBooks SimpleStart - for new and home based business
The simplest way to manage and track money going in and out of your business.
QuickBooks Pro - manage your business accounts simply and easily
Manage your business accounts simply and easily.
QuickBooks Premier - fast and easy advanced accounting
Fast and easy advanced accounting.
Quick Payroll is designed to meet the fast growing needs of dynamic South African SMEs.
It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
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Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll Lite is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
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Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll Startup is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
