Top Tax Tips for Small Business Owners Before Year-End

Getting Ready for Year End Taxes

The end of the year is a pivotal time for small business owners throughout Nebraska, including those in Columbus, Crete, Beatrice, and Lincoln. Taking the right steps now can make tax season far smoother and more financially rewarding. By staying proactive, you’ll not only ensure compliance with both federal and Nebraska state tax regulations but may also uncover opportunities to save on your taxes.

If you’re ready to streamline your tax preparation and potentially maximize your savings, these practical tips will help you get started wherever your business is located in our region.

1. Organize Your Financial Records

One of the most important ways to simplify tax preparation is by keeping your financial records in order. This is especially true for Nebraska businesses subject to specific state tax reporting requirements. Disorganized records often lead to missed deductions and additional stress.

Set Up a Digital Filing System

Digital tools make it easy to track income, expenses, and receipts throughout the year. Leverage bookkeeping software like QuickBooks or Xero to organize your financial data. With features like automated expense categorization and bank account syncing, these tools provide a clear overview of your business finances and ensure nothing falls through the cracks—whether your business operates in Lincoln’s bustling downtown or serves the close-knit community in Crete.

Reconcile Monthly

Schedule time at the end of each month to reconcile your financial accounts. This process ensures your records align with bank statements, making discrepancies easier to resolve before they escalate.

Retain Necessary Documentation

The IRS recommends that businesses keep records for at least three years from the filing date. Essential documents include receipts, invoices, payroll records, and mileage logs. Organized records not only streamline tax preparation but also serve as protection if you’re audited by federal or Nebraska tax authorities.

2. Maximize Deductions

Small businesses in our communities can lower their taxable income by taking full advantage of available deductions. However, many owners miss out simply because they’re unaware of them.

Track Your Business Expenses

Deductible expenses include things like office supplies, software subscriptions, travel costs, utilities, and rent for commercial spaces. Many businesses in areas like Columbus and Beatrice operate out of leased storefronts or offices, so it’s important to keep detailed records of rent and related expenses. Also, be sure that personal expenses are never mixed with business ones—it’s a compliance red flag.

Deduct Home Office Expenses

If you run your business from home in places like Crete or the Lincoln suburbs, you may qualify for the home office deduction. The simplified option allows you to deduct $5 per square foot of dedicated home office space, up to a maximum of 300 square feet. Just ensure the space is used exclusively for business purposes.

Don't Forget Depreciation

Assets like office furniture, equipment, and vehicles lose value over time. By claiming depreciation, you can spread these costs over several years, reducing your taxable income annually.

3. Take Advantage of Tax Credits

While deductions reduce taxable income, tax credits directly reduce the amount of tax you owe. Here are a few popular credits often overlooked by small business owners in Nebraska:

Research and Development (R&D) Tax Credit

If your business in Lincoln or Beatrice has invested in developing new products, improving processes, or innovating, you could qualify for the R&D tax credit, which rewards companies for their ingenuity.

Work Opportunity Tax Credit (WOTC)

For businesses across Columbus, Crete, or any part of Southeast Nebraska, this credit provides financial relief for hiring employees from specific groups who face significant barriers to employment. It’s a win-win for diversifying your workforce and reducing your tax burden.

Disabled Access Credit

If you've made your business more accessible to individuals with disabilities, adding ramps to your Beatrice storefront or updating signage in your Lincoln office, this credit can help offset those costs.

4. Plan for Estimated Taxes

Small business owners who are self-employed or operate as sole proprietors often pay estimated taxes throughout the year, rather than through regular payroll deductions. This is true for the many independent operators working across Crete, Columbus, Lincoln, and beyond. Missing payments or underpaying can lead to penalties.

Calculate Quarterly Payments Accurately

To determine what you owe, calculate your estimated payments based on last year’s tax return using IRS Form 1040-ES. Keep in mind that Nebraska’s state tax requirements might differ from those at the federal level, so review both if your income fluctuates.

Set Aside Funds Regularly

Avoid scrambling to meet payment deadlines by setting aside tax funds throughout the year. A dedicated business savings account can help you allocate a percentage of your income specifically for taxes.

5. Consider Year-End Tax Planning

The months leading up to year-end present opportunities to manage your taxable income strategically, and these moves can have a direct impact on Main Street businesses in all of our area towns.

Defer Income or Accelerate Expenses

If your business had a particularly profitable year and can afford to defer some income until January, you may reduce your tax burden for the current year. Conversely, accelerating deductible expenses, such as paying January’s rent in December, can further decrease your taxable income.

Contribute to Retirement Plans

Small business owners have various retirement plan options, like a SEP IRA, SIMPLE IRA, or solo 401(k). Contributions to these plans not only build your retirement savings but also reduce your taxable income.

Conduct a Tax Strategy Review with a Local Expert

Working with a tax professional at Burch & Associates, Inc., who specializes in serving Columbus, Crete, Beatrice, Lincoln, and surrounding Nebraska communities, can reveal savings opportunities tailored to your specific financial situation. We’re familiar with unique state and local tax breaks and can help you create a long-term tax strategy.

Take on Tax Season Confidently

Preparing for the upcoming tax season doesn’t have to be daunting. By taking steps now to organize your financial records, maximize deductions, leverage potential tax credits, and plan for estimated taxes, you’ll set your business up for success, no matter where you’re located in Southeast Nebraska.

Tax regulations can be complex, and personalized advice can make all the difference. The team at Burch & Associates, Inc. specializes in helping small businesses across Lincoln, Columbus, Crete, Beatrice, and neighboring areas optimize their tax strategies with expert guidance and personalized attention.

Contact us today to schedule your consultation and secure your financial future. From tax preparation to long-term planning, we’re here to support your Nebraska business every step of the way!

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Why Hire a Professional Bookkeeper for Your Small Business?

June 30, 2025

Running a small business comes with its share of challenges, and managing your finances is one of the most critical tasks to get right. Keeping accurate financial records and ensuring compliance with tax laws may not be the most glamorous aspects of entrepreneurship, but they are essential to the long-term success of your business. That’s where hiring a professional bookkeeper can make all the difference. Here, we explore the key reasons why partnering with a professional bookkeeper is a smart move for your small business and how Burch & Associates, Inc. can help lighten your workload and set you up for success. 1. Save Time and Focus on Growing Your Business Managing your business finances can eat up a significant amount of your time, especially if you’re not familiar with bookkeeping systems or best practices. Every hour you spend balancing the books is an hour you’re not spending on growing your business, enhancing your products or services, or engaging with your customers. A professional bookkeeper handles time-consuming tasks such as tracking transactions, reconciling accounts, and managing payroll, freeing you up to focus on your core business activities. This frees up more time for you to focus on more important things. 2. Ensure Accurate Financial Records Accurate records are the backbone of your business's financial health. Mistakes can lead to overspending, missed tax deductions, or even compliance issues down the line. Bookkeeping professionals are trained to be detail-oriented and thorough. They can provide accurate, up-to-date financial reports that reflect the true state of your business. 3. Stay Compliant with Tax Laws Tax compliance is a priority for every business, but keeping up with changing regulations and deadlines can be overwhelming. Mistakes in your financial records can lead to costly penalties or audits. A professional bookkeeper is well-versed in tax laws and reporting requirements. They ensure your records are properly organized and up-to-date, making tax season far less stressful. 4. Gain Insight into Your Financial Health Understanding your financial position is key to making informed business decisions, whether you’re planning to expand, cut costs, or secure additional funding. Bookkeepers provide detailed financial reports that give you a clear picture of your income, expenses, and profitability. These reports can help you identify trends, manage cash flow, and plan for the future. 5. Avoid Costly Mistakes Financial errors, such as missed payments or forgotten invoices, can hurt your cash flow and damage your business reputation. With a professional bookkeeper, you minimize the risk of costly oversights. Bookkeepers use their expertise to catch potential errors before they become problems. They implement systems that streamline financial processes and ensure nothing falls through the cracks. 6. Reduce Stress and Regain Peace of Mind Attempting to manage all aspects of your business alone can be stressful, especially when it comes to finances. Hiring a professional bookkeeper means you no longer have to worry about whether your financial records are in order. By taking bookkeeping responsibilities off your plate, professional bookkeepers give you peace of mind. You’ll know that your business finances are being managed by experts who have your best interests at heart. This will allow you to focus on running your business with confidence. Partner with Burch & Associates, Inc. At Burch & Associates, Inc. , we understand the unique challenges small businesses face, and we’re here to help. Since 1971, we have been providing comprehensive bookkeeping services to clients nationwide and locally in Lincoln, NE . Our commitment to accuracy, reliability, and personalized service has made us a trusted partner for businesses of all sizes. With Burch & Associates, Inc., we can provide accurate recordkeeping , payroll management , tax preparation , and other custom services tailored to your business' specific needs. Whether your business is just starting out or looking for ways to streamline financial operations, partnering with an expert like Burch & Associates, Inc. can make a world of difference. Contact us if you need the help of a professional bookkeeper.

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