There may still be opportunities to reduce your company’s 2019 tax bill. If your business uses an accrual-based accounting system, here are 5 ways to potentially reduce your 2019 tax bill before the end of the year:
- Record and recognize expenses (such as taxes, utility bills, commissions and insurance premiums) incurred in 2019 that will not be paid until 2020.
- Use credit cards to accelerate deductions without pay for expenses until next year.
- Review prepaid expense accounts and write off any items that have been used up.
- Write off outstanding receivables that you can establish as uncollectible.
- Pay interest on all shareholder loans to your company.
If you are the business owner, we also have our 2019 year-end tax planning tips posted that may come in handy. Please feel free to contact us with any questions you might have regarding any of the items above or how our experienced tax professionals can be of assistance to you.