2024 Year-End Tax Tips for Small Business Owners in Brooklyn, NY

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December 9, 2024 | support

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The end of the year is an important time for small business owners to review their financials and prepare for the upcoming tax season. Taking the right steps now can maximize deductions, reduce your tax liability, and ensure you’re ready for the year ahead. Here are key year-end tax tips tailored for Brooklyn-based businesses:

1. Organize Your Financial Records

Accurate records are the foundation of a smooth tax filing process. Dedicate time to review and organize the following:

Income Statements: Ensure all revenues are accurately recorded.
Expense Documentation: Gather receipts for business-related costs, including utilities, rent, and supplies.
Employee and Contractor Records: Confirm you have updated W-2s and 1099s ready to issue in January.

Digital tools like QuickBooks or Xero can make this process easier. If you’re not already using accounting software, now might be the time to implement one for the new year.

2. Claim All Available Deductions

Many small business owners miss out on valuable deductions that can lower their taxable income. Some common deductions to consider include:

Home Office Deduction: If you work from a dedicated space in your home, you may be eligible.
Vehicle Expenses: Track mileage and costs for business use.
Office Supplies and Equipment: Purchases made before December 31st may qualify under Section 179 for immediate deduction.

Investments like upgrading equipment or prepaying for services can be deducted in the current tax year.

3. Explore Tax Credits

Tax credits are a powerful way to reduce your tax bill. Some credits to investigate include:

Employee Retention Credit (ERC): Available for businesses that kept employees on payroll during specific periods in the past few years.
Work Opportunity Tax Credit (WOTC): For hiring individuals from certain target groups.
Energy-Efficient Business Credit: If you’ve invested in renewable energy systems or made energy-efficient improvements.

Custom Accounting CPA can help determine if your business qualifies for these or other credits.

4. Conduct a Year-End Tax Review

Schedule a meeting with your accountant to review your tax position. This can help you:

Identify opportunities to defer income into the next year or accelerate expenses into the current year.
Make final contributions to retirement plans like SEP IRAs or SIMPLE IRAs, which can also lower taxable income.
Understand how upcoming tax law changes might affect your filing.

Stay Ahead with Local Expertise

According to a recent survey, 58% of small business owners feel unprepared for tax season (source). Partnering with a local CPA in Brooklyn, like Custom Accounting CPA, ensures that you have a knowledgeable guide to navigate the complexities of taxes.

Get a Head Start Today!
Ready to finish the year strong? Contact Custom Accounting CPA for a consultation, and let us help you save time, money, and stress this tax season.