Year-end Tax Tip

For all companies reporting their taxes on a cash basis the year-end offers a obvious tax-savings opportunity—pre-pay January expenses so that they can be deducted this year instead of next year. Multiply the tax savings by pre-paying expenses that add to your bottom line—advertising, management retreat expenses, consulting, and similar services. In effect this pre-payment often gives you a 40% discount on these services allowing you to do some things that you might not otherwise have the ability to do. You pay less in taxes; you get profitable services—everyone wins except the government.