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It seems almost cruel to bring up the topic of taxes this far in advance of year-end, but now is the time of year when smart business owners are thinking ahead and making adjustments that will minimize the number of dollars that go into Uncle Sam’s pocket on April 15.

We all know taxes are complicated, but they still have to be paid. It’s a good idea to have someone who knows taxes inside and out so that you can get the tax advice you need.

Here are some things to ask yourself as you go throughout the year, so that taxes will be much simpler come tax time.

Who’s sitting down with you on a regular basis to determine the tax impact of your key decisions including major purchases and sizing your personal paycheck?

You can deduct more money than ever before for equipment purchases. You can also take tax deductions on expenditures that your company would usually need to write off over the next several years, and get an immediate tax deduction. Depending on what tax bracket you fall into, your tax break could be anywhere from $15,000-$39,000.

Do you have someone helping you construct a smart tax strategy so that your year-end income and expenses are optimized?

At year’s end, you should be thinking, “Increase expenses, and delay income.” This means that you’ll pay fewer taxes. For example, you can pay your January mortgage a little early or prepay for magazine subscriptions so that those taxes don’t get paid until the next year. However, if you’ve had a bad year and expect the next year is going to be better, you might want to do the opposite.

Do you have someone advising you on ways to save taxes you might not know about?

Take care in check for those frequently missed deductions. For example, you could set up what’s called af “Dependent Care Assistance Program.” You can put more money in your employees’ pockets this way. Every year, you can reimburse employees for up to $5,000 in childcare expenses, tax-free. They don’t pay income taxes on the reimbursement, and you don’t pay payroll taxes on that amount, either.

Your CPA can help you take advantage of every tax opportunity when he or she prepares and files your actual returns. However, isn’t it nice to know that somebody who knows your business is working with you throughout the year to develop a long-term tax strategy?

Take advantage of every legitimate tax deduction. It simply smart to do this, but you have to know what’s best for your company in the long-term, and not just focus on what’s going to reduce your taxes short term.

Tags: Bookkeeping