Reduce Your 2014 Taxes for a Happier New Year
The holiday season can be an up and down roller coaster for businesses. The success of the economy often determines how consumers will shop and, ultimately, how much revenue you can expect to bring in.
Zerohedge.com wrote from a National Retail Federation report, “Sales during the four-day Thanksgiving holiday period crashed by a whopping 11% from $57.4 billion to $50.9 billion.” But, the NRF contributes this drop to a strengthening economy that has consumers less reliant on heavy discounts and the ability to shop online 24/7.
Whether you feel your business took a hard hit so far this shopping season or if you think you are right on track, you know conditions are always changing. That’s why it’s important to prepare yourself and your business for a financially stable New Year.
5 Ways to Have a Happier, More Financially Stable 2015
- Focus on your strengths: Everyone has that one thing they just really dislike doing. Chances are, if you dislike it that much you probably aren’t the best person suited for the job. So, find the person that is and delegate the responsibility. Focus on your strengths and then share those strengths with another colleague, just as you should embrace others’ strengths to overcome what may be your weakness. You’ll notice that getting some tasks off your plate can really pay off in 2015.
- Do your best to reduce your 2014 taxes: In short, don’t wait until the last minute. Too many business owners wait until the end of December to think about how they can reduce their company’s tax bills. December is the time to set up a meeting with your CFO or go over the books yourself. (Not sure what you’re looking for? Check out one of these 50 free bookkeeping resources!) By taking a good look a couple weeks in advance, you may have time to prepay expenses for the first few months of 2015 – especially if you have some available cash flow.
- Reduce holiday spending: It may be time to rework that shopping list and start planning your purchases ahead of time. How much did your staff enjoy the holiday party last year? Is there anything you can leave out this year? Consider what purchases really made you and your staff happy, or what purchases made an impact on the business and stick with those. Any additional cash you start with in 2015 will help you feel less financially stressed.
- Think about retirement, and think about it now: Retirement? That’s far, far away. And maybe so, but planning for it starts early, especially if your business is small. Before you get your tax bill in you need to decide how much you will contribute to your retirement account for the 2014 tax year. Otherwise, you will have to find a lump sum to contribute to it or choose not to contribute at all (which isn’t a good idea). Thinking about it early helps to ensure proper management of it and allows you to put retirement money aside to eventually add to your account.
- Keep tabs on your stocks and bonds (if you have any): Make sure you are completely aware of where you are distributing your money and have a clear picture of what your long-term investment goals are.
Direct Capital wants to see your small business succeed, so whether you need financial services or business advice, we’re here for you.