How Small Businesses Can Cope With The Year-End Cash Crunch

CROFTON, Md. - Dec. 19, 2014 - PRLog -- by David Jackson - IFG

There is no time more stressful for small business owners than the end of the year. This period of juggling numbers, sorting out income and finding the most efficient tax breaks can confuse anyone. To avoid the cash crunch, many of today's businesses are turning to invoice discounting services like The Interface Financial Group (IFG) for some much-needed help.

"There's never a greater need for finding fast solutions to cash flow problems than at the end of the year," said David Jackson, owner of the local Crofton, Maryland Interface Financial office. The Interface Financial Group provides financial services including invoice discounting to entrepreneurs and growing small businesses.

Jackson offers these five tax-saving tips to help small business owners and entrepreneurs deal with the year-end cash crunch:

1.   Purchase necessary equipment and technology. If you have any plans for purchasing equipment or computers in the next year, making those purchases this calendar year will allow your business to write off the taxes against this year's income. The majority of small businesses can deduct equipment purchases with the option of an immediate write-off or one spread out over years.

2.   Start up, or contribute to, your retirement plan. Payments made to your business's existing retirement plan before the end of the year can reduce your income for the year. "If you do not have a retirement plan set up for you or your employees, consider starting one," said Jackson. "There are many options available, including a 401(k) and a SEP-IRA, depending on what best fits your business."

3.   Delay or defer income. Any income a company receives during early January instead of late December can cut your tax bill. Income received in early January, will not be taxed until the following April. "If lower income tax rates are predicted for the new year, delayed income makes a lot of financial sense for many business owners," said David Jackson.

4.   Increase Expenses. Similar to delaying income, increasing expenses at the end of the year can reduce income and maximize your tax deductions for the year. If there is an upcoming need for goods or services, anything from phone plans to office supplies, purchase them now.

5.   Use an invoice discounting service. Many small business owners regularly use an invoice discounting service like IFG to maximize their year-end cash position. A strong cash position is a universal must for all businesses.

The Crofton, Maryland IFG office provides invoice-discounting services to small businesses in the central Maryland area. Interface clients are business owners with current, quality receivables, who seek to convert those receivables into immediate cash to fuel their expansion needs.

David Jackson is owner of The Interface Financial Group, Crofton, Maryland,  a provider of invoice discounting services. For more information, call 443-333-8066 or email at djackson@interfacefinancial.com, or go to our website  www.InterfaceFinancial.com/Jackson