Many business owners do not begin to think about taxes until January but this is costing them thousands of dollars. You can easily lower your tax liability by placing funds in your IRA, 401K or making a charitable donation but you have to do this before Dec 31 to get credit in the current tax year.
It is very easy to setup a IRA or 401K, this will grow your retirement savings as well as lower your tax bill. If you do not have a IRA or 401K; you can set one up in matter of minutes. Contact a financial planner or your financial institution and they can walk you through. I use Etrade you can set one up online in 5 minutes or less. Also remember that if you setup a self directed IRA or 401K you invest or loan those funds back into your own business if needed.
I personally believe that it is very important to give back to my community by supporting charities. I do not advertise this to promote my business because of my personal beliefs but many businesses get free PR and advertising which often will totally offset the amount donated and you still get the tax break.
Another benefit of figuring your tax liability in October is that it gives you time to gather funds to cover your taxes during the Christmas sales season which is often the busiest season for business. Your accountant will also appreciate getting started early.
Contact me if you have any questions.