Accountants Offer Year-End Tax Saving Tips

Want to save some tax dollars? The National Society of Accountants offers these end-of-the-year savings tips for business owners:

1. Buy now. Make payments in 2006 for 2007 needs, including office supplies, repairs, maintenance and advertising.

2. Set up a retirement plan. Opening an SEP or an IRA can lop a mint from your tax bottom line.

3. Write off bad debts. If you use the accrual basis to account for income, then you can deduct bad debts when they are partially or totally worthless.

4. Review building depreciation. If your business has purchased or substantially renovated a building, get your accountant to analyze its components to see if any or all of it qualifies for a shorter depreciation schedule.

5. Shift how you do business. Tax laws change, so it could be time for you to switch from sole proprietor to c-corporation or s-corporation.

6. Take a hard look at your accountant. Is he doing the job or should you find someone who better understands your business?

Source: Orlando Sentinel, Sara Isaac (12/4/2006)