As the year comes to a close, many small business owners are realizing significant profits. If you fall into that category, congratulations! Now may be a great time to consider using a portion of those profits to prepay some expenses for 2014. Strategic spending now may help to reduce your tax burden later.
Some of the most common prepaid expenses include:
- Insurance Coverage
- Other Goods and Services
Keep in mind that some vendors may even be willing to extend discounts for prepayment.
Your unique financial situation will dictate whether or not expense prepayment is appropriate for your business. Unsure of where your business stands on the profit/loss spectrum? Email questions to David@DEKEbookkeeping.com or schedule an evaluation to learn more!