For most small businesses the beginning of the year means preparing your taxes from the previous year.  Each year brings about changes to laws and policies and being aware of all of them can potentially save or cost you thousands of dollars.  Tax time can be extremely stressful so it’s important that you’re prepared and organized to make the process as easy as possible.  One important change to note is that of the deadlines for filing.  C corporations have had their deadline moved back to April 15^th and S corporations have been moved forward to March 15^th.  In this article we’ve outlined some best practices and key tax break extensions to help you take advantage of deductions and avoid any complications.

Year Round Planning

While many small business owners look at tax preparation as a once a year activity it’s important to treat it as a year round task.  Waiting to organize your finances can make the tax process more complicated and cut down on your money saving opportunities.  Ensuring that you keep close track of your financial records will help you save time and expose more options for write offs and deductions.  Misplacing important documents can be very costly and cause issues for your business.

Hire A Professional

In order to maximize your deductions it is in your best interest to hire a profession to handle your taxes.  While you may be well versed in the basics of tax preparation, a professional will help you uncover possible deductions and the savings can far outweigh the hiring fees.  Finding a trustworthy person to handle your taxes can be difficult and proper research will ensure you make a good hire.  Find someone who is reputable and has experience in your specific industry.

Keep Up With Laws

Even if you’ve hired a professional to handle your taxes it’s important that you keep up with any law changes to ensure you’re capitalizing on every possible deduction and benefit.  Tax laws are constantly changing and can vary by industry.  Like every other aspect of small business keeping up with the times is essential to the longevity of your company.  Fortunately with improvements in technology and online resources there are plenty of places to find the information you need.

Tax Breaks

There are several different tax breaks that have been extended through 2017 which can significantly impact your bottom line.

• Section 179: This allows for a $500,000 deduction for equipment purchases less than two million dollars.  It has also been modified to include computer equipment as long as it is used for business 50% of the time.
• Bonus Depreciation: This allows for a 50% write off of new capital equipment when it is purchased.  In 2018 and 2019 the write off will drop to 40% and then 30% until it expires in 2020.
• Work Opportunity: This act provides small businesses an incentive for hiring certain long-term unemployed people including military veterans.  It allows for a 40% write off for the first $6,000 in wages for hiring people that have been out of work for at least 27 weeks.
• Possible Corporate Tax Rate: Currently the federal corporate tax rate stands at 35%.  With new leadership this rate is expected to drop to between 15 and 25 percent.

Merchant Cash Advances

Although cash advances are not loans, they are advance payments on future sales, which make them exempt from taxes at the time of the advance. Business owners will pay taxes on their income, even the income that goes to back to the cash advance company to repay the advance. You do not pay on the lump sum when it is advanced.  Furthermore, you can deduct the fees paid to the cash advance company as a business expense, just as you would deduct any other fees paid by the business. In effect, merchant cash advances have a neutral effect on the taxation of the business. They don't shelter any of the business's income from taxes, but neither do they subject it to any more taxation than it otherwise would be.  When it comes to taxes, cash advances are treated much the same way as loans even though they are not loans.  The advantage for your business is that the money is available when it is most needed or when it provides the greatest advantage. Without financing, it would be next to impossible for many small businesses to expand, open a second location, or hire employees that will allow their businesses to grow.

Quikstone Capital Solutions works closely with small business owners to offer advice and provide fast funding to expand and improve.  A merchant cash advance is one of the fastest and easiest ways to obtain cash for your expansion.  Many small business owners have difficulty obtaining a bank loan due to strict qualifications. A merchant cash advance from Quikstone Capital Solutions is a business loan alternative with no application fees, a simple approval process and flexible credit guidelines. Contact Quikstone Capital Solutions to help grow your business.