In addition to the normal holiday rush, business owners also have to deal with a lot of end-of-year tasks that can make this time of year quite stressful. However, as you’re closing out your books and attending to all those other end-of-year duties, it’s important that you fit in an appointment with your accountant as well. Keep reading to learn why it’s so vital for business owners to meet with an accountant before the calendar year ends.

Find Additional Tax Deductions

In order to claim a tax deduction on your business return for 2022, you’ll most likely need to make the tax-deductible purchase or contribution before the calendar rolls over to the New Year. (There are a few exceptions to this, but not many.) Rather than simply taking a reactive approach and only examining your deductions after the year is over, it’s a good idea to sit down with your accountant now and determine if additional deductions could benefit you.

Your accountant can examine your business finances and search for additional deductions that you might want to consider. Doing this now will allow you to reap the benefits of additional deductions on your 2022 tax return, rather than discovering after the fact that you could have saved even more on your taxes with some better planning.

Consider New Equipment Purchases

Timing your equipment purchases for your business can be a bit challenging. Do you run your current equipment into the ground before you replace it, and risk having downtime in your productivity? Or do you replace it while it’s still functioning well, and end up replacing your equipment more frequently than is necessary? While there are many considerations that go into when you replace your equipment, you can’t overlook the impact it has on your taxes.

Most business equipment purchases are deductible on your return, which can reduce your tax liability dollar for dollar. If you sit down with your accountant and find that you’re in a higher tax bracket than normal this year, and you’ve been considering a new equipment purchase soon, it may be a good idea to purchase that equipment before the end of the year. This will save you more on your taxes than it would in other tax years, and may even help you drop back down into a lower tax bracket in some cases.

Make Decisions about Outstanding Invoices

One of the end-of-year tasks that many business owners face is trying to close out any outstanding invoices they may have. However, pushing to close those invoices and collect payment isn’t necessarily always the best choice. In some cases, waiting to collect can offer tax savings. For example, if you’re already up in a higher tax bracket than normal, putting off those collections until early next year may reduce the taxes you pay on them (assuming, of course, that your income is back within your normal tax bracket next year).

Only a careful examination of your current financials and projections for next year’s income can tell you what the best decision is, so you should sit down with your accountant before the year ends to make this important decision.

Prepare for Your Tax Return

It’s no secret that filing your taxes can be stressful—but it’s even more stressful if you’re waiting until the last minute to get everything together to file. If you sit down with your business accountant now, they can help you start planning for your tax return, collecting the necessary documents, and ensuring that you will have the funds available to pay what you to the IRS. Early preparation can allow you to file your return sooner, rather than dealing with the last-minute hassle of pulling things together before the deadline. It also reduces the risk of errors, since you’ll have the time to go over your financials in more detail and ensure nothing is missing.

If you haven’t yet had your end-of-year tax planning session, contact Peter Witts, CPA, today. Schedule your appointment with one of our business tax experts, and we’ll sit down with you to go over your financials and tax projections for 2022. Then, we’ll provide our expert guidance on the important financial decisions you have to make before the end of the year. Plus, by meeting with a CPA now, you’ll be able to get your appointment before our schedule fills up with the regular rush of tax season. Get a head start on your taxes, and call now to schedule your tax planning meeting.