Year-end means a lot to small scale business men they have to consider proper tax planning and also ensure to stay prepared, avoid mistakes and ensure you are filing correctly and in a way that is beneficial for your business. Below mentioned are some of the important steps for year-end tax preparation in order to close out the year financially.
Reviewing the reports
It is time to spend money on items your business needs so you can maximize deductions it is very import to keep a record of all the purchases you make to get the most of your deductions.
Run an inventory check
When there is a drop in an inventory the business owner can claim for deductions. This depends upon the accounting method also it is very important to cross check with your accountant.
Maintain a plan for paying the taxes
As a business owner you may be aware of each and every detail of the business. You also have an idea of the taxes related to your business. An expert accountant can calculate the estimated taxes and advise you on whether quarterly taxes are in your best interest.
Set up to date books and records
Record keeping is one of the most important part of bookkeeping band it is very essential to be organized and prepared for each tax year. The best way to take control of your business finances is by having systems in place to ensure that you are taking care of all the deductions and reporting all the expenses.
Keep up to date with law changes
The tax laws constantly change due to changing legislations. The accountant will likely keep you updated with all the changes as well, some updates can benefit you greatly must be acted in a timely manner
Contribute to retirement plan
Make payments to retirement plans to reduce the income. If you have not started a retirement plan then talk to financial advisor to determine which plan could be best for business.
Making Contribute to Charity
Contribution to charitable trust is a great thing for small business a great thing and you don’t have to donate money. It is very important to claim deduction of fair market value. Make sure you furnish the proper document sand receive for your records.
Defer Income and Accelerate Expenses
There are many small businesses who operate on the method of cash accounting this method is the income is recognized when the cash is actually received, and expenses are organized when they are actually paid.
This method also offers the small business owners the opportunity to defer income and accelerate expenses at year-end, which can help decrease your tax burden.
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Tax consultants in UAE
If you are looking to ways plan the tax planning for the business in UAE contact tax consultants in UAE/ Dubai . Our experts help to plan the tax liability or the business and also outline the different methods a strategy to reduce the tax burden in UAE. At Farhat and co, we help you understand the best options for starting a business in UAE. Contact us today for a free initial consultation