The year is coming to a close quickly, which means it’s almost time to start thinking about taxes. The next two months are crucial for businesses to decide how they are going to enter the next year. Looking ahead and predicting your business’s spending and needs for 2023 can seem daunting, but there are specialists in the area to help you make the best
possible decision for your business.
There is not a singular year-end tax strategy for every business. There are numerous puzzle pieces that have to come together to make the
perfect plan for you and your business. See the full picture with help and advice from these knowledgeable sources!
Knowing When and When Not to Spend
Sometimes it feels like as soon as the previous tax season is over, it becomes time to think about the next one. As much as we want to forget about taxes come May, a business can benefit greatly from getting things planned early.
Lutz is the largest locally-owned firm of its kind in Nebraska. Their tax team will work closely with you to help identify tax strategies that are critical to your continued success. They have the capacity to handle any level of complexity for entities ranging from corporations to partnerships to individuals and a variety of industries.
Lutz will meet with clients throughout the year, but especially in November and December to project business income and how that flows to the owner’s personal returns. The goal of these meetings is to understand how the year went and prepare both parties for any March or April tax payments.
One of the most common ways to mitigate those tax payments is to purchase equipment or prepay known expenses. Lutz creates projections outlining what the tax liability will look like if the business proceeds with spending or if they decide against it. They strive to provide their clients with all the information they need to make their own decision on whether or not end-of-year spending is the correct decision for them.
“I always emphasize to business owners that factors other than reducing tax are just as
important when considering end-of-year spending. Many businesses are so focused on reducing their tax liability that they put themselves in a bind somewhere else, usually in terms of cash flow,” said Lutz Tax Manager Tom Docter. “It may make sense tax-wise to purchase a piece of equipment a year in advance of when it is actually needed for operations, but many times it may not make sense from a cash flow perspective.”
The most common scenario is when the business takes out a loan to purchase the equipment. The business will receive a deduction for the amount spent in that first year. However, the loan will be serviced over the next few years. In those later years, the business will be using cash to pay off the loan, but they will not receive a tax deduction because they already took it in the first year. This can easily lead to cash flow problems where businesses are paying off the loan and paying taxes in the same year.
Every year comes with its own challenges and changes to tax law that many people are unaware of. These small changes going unnoticed could completely change how your business focuses their efforts at the end of the year.
“As of now, 2022 is the final year where businesses can utilize 100% bonus depreciation on many capital expenditures outside of land and buildings to immediately depreciate the equipment. The Tax Cuts and Jobs Act enacted this provision in 2017, and it has been a terrific tool in year-end planning,” explained Tom. “Starting in 2023 the bonus depreciation begins to phase-out to 80% depreciation, then 60% in 2024, 40% in 2025, 20% in 2026, and finally 0% in 2027. Businesses will still have the ability to claim Section 179 expense on similar purchases, but the limitations around Section 179 expense are more stringent than bonus depreciation is.”
Tom’s biggest piece of advice is to plan ahead and be proactive. Meet with your CPA firm throughout the year so both sides are knowledgeable on how the year went financially and can brainstorm opportunities to reduce tax exposure in March and April. Many industries are still seeing significant supply chain shortages and will continue to for the foreseeable future. Those shortages may have a significant impact on end-of-year spending, so the earlier those discussions can be had, the more flexibility businesses have to make the best overall decision on end-of-year spending.
Let the Professionals Take Care of You
Many business owners put pressure on themselves to do it all themselves, often for the sake of saving some money in the process. However, when it comes to taxes and other accounting processes, you’re more than likely going to be better off having a professional take care of it. Since they know what they are doing and have the time (time you don’t have) to keep up with all the changing codes and policies, a tax professional will actually end up saving you more money.
At Cruise & Associates, they work for people who work. Their goal is to meet your accounting needs and ensure your finances are streamlined and efficient. Cruise & Associates specializes in income taxes, tax planning, bookkeeping, payroll, business controls,
and wealth management. They want to increase your income and reduce your tax liability.
Cruise & Associates provides consultations with business owners, so they know exactly where they are financially. With their help, you can create a plan that is unique to your business and help you determine what should be done before the end of the year in terms of spending. They listen to your needs and work one-on-one with you to develop the right plan for you and your business.
“No matter if your business is having a good or bad year, year-end planning is extremely important,” said President and Founder Rob Cruise. “If you are having a good year, the planning can help you know what needs to be done to help reduce your tax liability. If your year is not going as well as you hoped, the planning will help you determine some changes that need to be made to help make next year more profitable.”
With the current economy, Rob suggests business owners evaluate their fees and prices and take a more cautious approach on spending. They should also shop around for the best interest rates between the different banks and credit sources.
Cruise & Associates believes in educating their clients and giving them the best service to provide them with the tools they need to be successful. With offices across eastern Nebraska, they are close by if you need a consultation.
Looking at the Big Picture to Maximize Savings
At SP Group, P.C., they can help you stay ahead of the game with their proactive year-end tax planning processes, which help you manage and plan for your tax liabilities. As a business owner, the end of the year is a pivotal time that can easily be overlooked.
It is vital to have a trusted advisor who can help you make the right decisions when it comes to when and where to spend your money before year-end.
“You will need to look at the big picture and see if it makes sense to maximize your tax savings this year or possibly move some of those expenses to the next year. Every situation is unique, and while working together, we can help you make the best decision for your business,” said Mark Nave, CPA. “For example, if you had a lower income year and are going to be paying taxes at a lower rate, it may make sense to delay spending some of those end-of-year dollars until next year when you expect income to be higher, offsetting the tax at a higher rate. An advisor who understands you, your business, and your goals will ultimately guide you to make the correct and most effective decision as the year comes to an end.”
As Mark noted, paying ahead for certain expenses can certainly have its benefits. If there are certain supplies, equipment, or other expenditures that you can reasonably foresee your business needing in the coming year, it may make sense to purchase those before the end of the year to maximize your tax benefit and get those savings now.
“Another form of paying ahead of time could include paying bonuses to your valued employees, which creates both a tax deduction for you and is a benefit for your employees,” Mark suggested.
Ultimately, SP Group wants to keep you and your business staying ahead by being prepared. They use their core values of the power of teamwork, life/work balance, competitiveness, and relationships to help you get the most out of your end-of-year spending. These combined allow SP Group to provide the extra insight necessary to maximize the benefits of year-end planning for you and your business.
Moving in to the New Year
The cost of renting a space such as an office, storefront, or any type of facility is fully tax deductible. If a company anticipates expanding or relocating to a bigger space, investing in commercial real estate is considered when creating a tax strategy. Greenleaf Commercial Real Estate is a firm that has been serving businesses throughout the Lincoln
area for decades.
The real estate market has been experiencing its challenges in the last few years, but with the help of a trusted professional, you and your business will be in great hands at Greenleaf. Their real estate experts can help work with current and prospective property owners on risk management, lease and purchase analysis, lease audits, and strategic planning.
Whether your company is a start-up looking for a new home or an existing company needing to expand, relocate, open an additional location, or enter into a lease renewal, Greenleaf Commercial has the market knowledge and industry experience to ensure that all your
needs and requirements are satisfied. They can assist with site selection, site tours, cost of occupancy analysis, space planning, lease and terms negotiations, tenant improvements, comparative lease analysis, and letters of intent. This type of support can save your business money and time during your businesses transition into a new space.
“Most businesses find it challenging to find the perfect space,” shared President and Director of Asset Management John Linscott. “An essential element of finding that location is building relationships. At Greenleaf Commercial Real Estate, we strive to understand each client’s unique circumstances and objectives to tailor a strategy designed to accomplish your goals. Throughout the process, we emphasize communication and accountability to earn each client’s trust and confidence. Our experienced group of professionals is here to help you reach your goals for your business and community.”
Greenleaf Commercial Real Estate can also help your business through every phase of project development for new construction and the redevelopment of existing facilities. This can be a lengthy process with lots of small details and processes that are hard to understand. Greenleaf is committed to making the journey less stressful and more profitable for your business by providing services such as TIF financing, pre-leasing, construction management, capitalization, and soliciting estimates and proposals.
Find the Right Home for Your Business
For smaller businesses looking into moving or finding an office space, an affordable, convenient option is renting a space from OneTEQ Office Suites. OneTEQ gives you the leverage you need to pursue new opportunities without committing to a long-term lease. You don’t need to purchase expensive equipment or hire a full-time staff. Their offices are available by the hour, day, month, or year.
Moving comes with a lot of expenses that can be eliminated by renting through OneTEQ. If this is your business’s first space, it may be wise to cut costs in the early stages. The expenses of a new building or vacant space can add up quickly, and going into the New Year, you want to be sure you have the funds to keep advancing the business and needs of your company, rather than the needs of the building.
Each office space comes with a variety of amenities such as common area copiers and color printers, reception and kitchen areas, wireless internet, cleaning service, IT assistance, and free parking. The spaces also come fully furnished.
OneTEQ makes it easy to find and book offices on terms that fit your budget and schedule. The 10 offices and 15 cubicles available at their downtown location provide productive environments for small teams or individuals needing something that a traditional office
lease can provide.
“We have business owners who have been utilizing our office suites for over eight years now,” said Kevin Knudson, owner. “OneTEQ is a desirable office environment for short-or-long-term small business owners.”
Their leasing options include short-term month-to-month rentals, long-term leases for 6-24 months, short-term office rental for day or week rentals, day-of move in with one hour notice, and conference room rental for non-leasing businesses at an hourly rate. The flexibility these leasing options provide is unmatched in the Lincoln real estate market. Make your business’s dreams come true for a fraction of the cost with OneTEQ Office Suites!
Invest in Your Team
One of the best decisions your business can make with its money is investing it back into your team. If you are looking for something to spend on before the New Year, consider looking into the team strengthening resources from Leadership Harbor.
The most effective way to improve your company’s results is to develop your team’s ability to work cohesively. Helping individual members of your team understand how to contribute their unique talents toward the overall goal of teamwork and collaboration will bring out the best in them, increase their productivity, and boost their morale.
“Once team members learn about their communication style and how to recognize and work with the styles of others, they increase their ability to deliver great results,” said Leadership Coach Kris Peterson. “Business leaders are often sidetracked mediating employee disagreements, and the enterprise is impacted by the lack of focus on results. Understanding communication styles can also help leaders motivate and reward team members for higher productivity and loyalty.”
The Leadership Games from Leadership Harbor are amazing tools for Team Development. They are an innovative way to engage your team in communication and leadership. Contact Leadership Harbor coaches to set up a time for your team to play. You won’t find a resource like this anywhere else!
The Leadership Games are based on the teachings of John C. Maxwell. The games help organizations improve their leadership intelligence and increase their effectiveness.
Leadership Harbor also provides individual coaching in areas such as personal development and communication. Providing your employees with access to these services could be a great way to improve the work being done at your business, but also help your employees better themselves and feel more confident in what they are bringing to the team. Consider offering coaching services as part of an end-of-year bonus or holiday gift to your employees. The skills they learn will be invaluable in their professional journey.
There’s an App for That!
Technology is changing the way people interact with their favorite brands. Websites, mobile apps, and social media networks offer consumers new ways to engage, discover deals, and buy products online. Since most people already use their smartphones every day, meeting them online can give your company a true advantage.
True North Technologies provides digital marketing services that can elevate your company’s online presence. They offer custom website design, search engine optimization (SEO), social media management, branding and logo design, text marketing, and mobile app development.
A custom mobile app has the potential to vastly improve your company’s customer engagement. It can simplify scheduling, streamline communication, and even support 24/7 online shopping. True North Technologies designs mobile apps according to their clients’ unique needs, and they create content that meets specific goals and appeals to diverse audiences. Their mobile apps are also secure, user-friendly, and optimized across both Apple iOS and Android devices.
“Mobile applications bridge the gap between seller and seeker,” said Renee Sobotka,
founder and CEO. “We help companies capitalize on the tremendous potential of this innovative technology.”
Making your company’s online presence truly shine has never been easier. A mobile app
can seamlessly integrate YouTube channels, music, podcasts, industry news, photo
galleries, business websites, and ecommerce platforms into a single, user-friendly design.
By working with True North, you’ll get access to the Google Font library, over 1,000 unique icons, countless features, and readymade templates perfect for your industry.
True North Technologies also offers specialized app builds for distinct purposes. For instance, they can include a golf course feature, which allows you to build out a golf course and encourage users to score games right on their smartphones. Other features include a fan wall, loyalty programs, real estate listings, an online menu, food ordering integrations, and a merchandise marketplace.
True North doesn’t simply develop mobile apps—they can help optimize them, too. They will empower you to make your own updates, track online transactions, send out custom notifications, and measure analytics to deliver the best possible user experience over time.
Launch your company into the 21st century by using digital marketing your advantage. Whether you’re a retailer, restauranteur, or service provider, a custom website, or mobile app developed by True North Technologies can boost sales, increase brand awareness, and nurture customer relationships for years to come.
Avoid the stress of the looming tax season by preparing how your business will tackle spending going into the New Year. Meet with a professional to discuss your options for year-end spending that has your business’s best interests in mind.