Hi! Nicole here, photo booth owner and Affiliate Manager at Photobooth Supply Co.
It’s December, which means we are almost at the end of the year and tax season is coming fast. I’ll be honest; last year my finances were chaotic. I want to go into 2024 in a much better position. So, today I’m going to share with you my strategy. Here are the 3 things that I’m going to be doing to prepare for tax season:
Reviewing and Organizing my Financial Records
Good record-keeping throughout the year is crucial, but now is the time to double-check and organize my financial records. This includes receipts, invoices, bank statements, and any other documents related to my business expenses. By having everything in order, I know I can maximize my deductions and credits. I’m definitely going to make sure that I include expenses like travel, home office costs, and office snacks. Every deductible expense counts!
Didn’t know you could expense office snacks? Check out my latest interview with Brittney Suttle, a CPA, here.
Investing in New Equipment
One of the most effective ways to reduce your taxable income is by purchasing new equipment for my photo booth business. Why now? Because under Section 179 of the IRS tax code, I learned that I can deduct the full purchase price of qualifying equipment bought or financed during the tax year. This means if I buy a photo booth now, I can deduct the full cost from my 2023 income, lowering the amount of tax I will owe.
If that’s something that you want to take advantage of too, checkout the photo booth that I have my eye on: the Guac.
Consulting with a Tax Professional
My tax expert/CPA will provide advice that is tailored to my specific situation, ensuring I can take advantage of all the deductions and credits available. They will also be able to offer guidance on how to strategically plan purchases and expenses to optimize my tax benefits.
I’m going to be setting up an appointment with my accountant as soon as possible to discuss my current strategy with them and see if there’s anything else I can do to take advantage of these last few weeks of 2023. I’m also going to be checking with them to make sure my business is set up correctly so that I can go into 2024 with confidence. If you don’t have a tax professional yet, this is the perfect time to find someone before their calendar fills up.
That concludes the 3 things that I’m going to be doing to prepare for tax season. Don’t forget to check out the interview on YouTube for even more tips from a CPA. There’s even a free download available listing some tax deductions that are available to you!
Cheers to 2023 and starting 2024 better than ever,
Owner of Own the Moment Booth and Own Your Moment Co.