As we’ve stated in the past, planning in advance for next year’s taxes has more than a few benefits. Not only can planning (and preparing) now ward off the headaches that can come with starting too late, it can also save you quite a bit of money.
Get bank statements, invoices, and receipts in order
Showing up to a tax appointment with a box full of receipts and invoices is one thing. Showing up with a box full of receipts and invoices that’s fully organized is another. Anything you can do to organize your financial documents now can save you money on your tax prep. Again– if your tax professional is billing you by the hour, and they need to spend two hours organizing your documents, that’s going to cost you.
Keep a running list of questions and issues
Business owners often have questions about the latest changes in the tax law and whether those changes will affect their business. If you have questions about how to keep track of (and maximize) deductions, steps you can take to maximize your tax savings, and when is the best time to invest in new equipment (or make a large business-related purchase), jot all of your questions down. You can even keep track of your questions using a note-taking app on your cell phone. This way, you’ll be able to add to your list on the fly.
Consider adding to your retirement accounts
Contributions to your 401(k) account will reduce your adjusted gross income (AGI), which is the amount of income that you need to pay taxes on. For the year 2020, annual contribution limits are set at $19,500. If you haven’t maxed out your contribution yet (or you’re realizing you still have quite a ways to go before you hit the max-out threshold), consider adding to your 401(k) account before the year ends.
Have questions? Call Hughes, Snell & Co., PA today
If you’re interested in learning more about the ways you can start preparing for next year’s tax season today, we’re here to help. Hughes, Snell & Co., PA works with individuals and professionals throughout Southwest Florida, and we pride ourselves on providing clients with customized solutions for their financial matters.
For more information on our company, the services we provide, or to schedule a no-cost consultation, call our office today to get started.