Taxes are such an important part of any business because it applies to everyone and it has a real affect on the bottom line.  At then end of the day, what matters is not what you make but what you get to keep.

All business, regardless of its legal structure or its tax classification, generates a tax liability on net income.  While the corporate tax code differs from the partnership tax code, the general premise is that revenue minus deductible expenses and credits is the formula for determining net income.

So, when we get into the last months of a calendar year, businesses start to think about what they can do to save on taxes.  Getting to the end of a tax year obvious brings up some potential for deferring revenue recognized and accelerating expenses to be taken.  Here are some tips that can be helpful:

1. Review Late Customer Accounts and Determine if You Can Take a Bad Debt Write Off Prior to Year End.

2. Accelerate the Payment of any Bills That Might be Technically Owed after the Year End.

3. If your Business Needs to Buy Any Equipment, Consider Purchasing Prior to Year End.  The Internal Revenue Code currently includes a generous threshold on being able to deduct the entire purchase price of capital equipment.  Check with your accountant for details.

4. Make Sure All Year End Bonuses are Paid Out Prior to Year End.

5 If you have a retirement plan, consider making contributions (for this one, you have some extra time but if you plan on making this contribution you might as well do it to secure the reduction in taxable revenue).