November is Tax Planning Month for Businesses

Don’t let the clock run out on your 2024 tax savings—November is the time to plan!

As the year wraps up, November is the perfect month to take control of your taxes. Why? For business owners, proactive tax planning now can lead to significant savings and peace of mind.

Here’s how to ensure you’re optimizing your tax strategy before the clock runs out.

Start Tax Planning Early

One benefit of starting any tax planning in November is time – starting in November gives you enough time to evaluate your financial situation and implement adjustments. By doing this, you’ll avoid the rush of last-minute decisions and potential errors.

Another major benefit of early planning is having the time to make informed choices that align with your business’s financial goals. Instead of scrambling in December or January… or April, November offers you breathing room to work with a tax expert, review your financial status, and adjust accordingly.

Consult Your Tax Professionals

Working with a tax professional isn’t just about meeting deadlines; it’s about enhancing the overall financial health of the business. Consulting an expert in November gives them time to carefully review your business’s financial records and suggest strategies to reduce your taxable income.

For example, tax advisors can guide you on whether to:

• Increase contributions to retirement accounts
• Prepay certain business expenses
• Make decisions regarding capital gains and losses

These professionals help identify overlooked opportunities and ensure your tax strategy supports your long-term financial goals. Early planning minimizes the stress of potential surprises when the tax season arrives.

Prevent Delays in Tax Preparation

Make the call to your tax expert, and kickstart the tax preparation process as early as possible. By acting now, you can avoid delays caused by the first-come, first-served approach. Many tax experts often have much to process for other clients. If you wait to turn in paperwork to your tax accountant, they may not be able to get your taxes filed till after the rush is processed.

Your business can face similar challenges if you wait too long:

1. Late Filings – where necessary adjustments are not able to be made and processed before the March or April deadline.
2. Fines for Late Filing – there is a risk of incurring fines for late submissions.
3. Extended Wait Times – where you submit tax documents too late for processing by the due date, it may necessitate filing an extension, resulting in a longer wait for any potential refunds.

Identify Year-End Tax-Saving Opportunities

During Tax Planning Month, there are several strategies you can implement to maximize your savings:

• Retirement Contributions: Consider maxing out your contributions to IRAs or 401(k)s.
• Charitable Contributions: November is an ideal time to donate, which can be deducted from your tax return.
• Business Expenses: If you have a business, evaluate whether it is beneficial to buy the necessary equipment or supplies before the end of the year.. 

By taking a proactive approach to tax planning in November, you ensure that you’re fully prepared for the year ahead, potentially saving both time and money.

Read our blog on How to Make Taxes Suck Less!
If you’re looking for a great tax preparer, we usually refer to Drake VantHul with Performance Financial.