Important end-of-year tax filing tips

While small businesses are hopefully counting up the revenue made from a successful holiday season, they must also manage the painstaking task of end-of-year payroll processing and other business expenditures. However, following these tips should make the process easier as the filing date rapidly approaches.

Small business owners should open or contribute to existing retirement plans, writes Glen Wielandt for Reuters. The head of franchise business development at Fiesta Auto Insurance states that these contributions will defer tax earnings on contributions and help with tax deductions.

Wielandt encourages entrepreneurs to pay any January bills in December, allowing for further deductions and allowing for January revenues to be at their strongest.

The National Federation of Independent Business suggests making any or all asset deductions for equipment important to everyday operational use. These deductions can be filed with a Section 179 form, which will control depreciation deduction for certain capital expenditures in one year.

Entrepreneurs should also be on the lookout for any available business tax credits, Wielandt writes. Businesses may be eligible for alternative motor vehicle credits or disability access credits.

Business have a great opportunity to limit their costs and tax responsibilities at the end of the year. Following these tips should help entrepreneurs maximize their business revenues for 2010.

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