Once you’re done tackling your floors and closets, add one more to-do to your list: Your business finances.
In the spirit of spring cleaning, Ameriprise financial advisor Michael Berris shares his top five tips for small business owners looking to get finances in order.
No. 1: Prepare for next year’s taxes … now.
You may be patting yourself on the back for getting your tax materials off to your accountant on time – but don’t stop there.
“Ideally, what [business owners] would do is take this as an opportunity to look at their ways to save on taxes for next year … What can they be doing now, so that next April, there’s a lower number?” explains Berris.
No. 2: Revisit your retirement plan.
In the vein of reducing your tax burden, Berris says you should take a look at your business retirement plan. Depending on your cash flow situation, Berris says it may be smart to contribute more to your and your employees’ retirement plans in order to cut back on taxes.
No. 3: Look at tax-free fringe benefits.
Aside from retirement accounts, there are a number of other benefits to offer that will reduce taxes for next year. Berris suggests seeking out an expert to discuss benefits like life insurance, disability insurance, long-term care and health insurance.
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