How Small Businesses Can Cope With the Year-End Cash Crunch, by Chuck Schultz

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 for some much-needed help.

Here are 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. 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.

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 to maximize their year-end cash position. A strong cash position is a universal must for all businesses.
Chuck and Karin Schultz are principals of The Interface Financial Group (IFG)’s Las Vegas office. The company is a leading alternative funding source for small business. IFG has provided short-term working capital funding in the form of a unique Invoice Discounting service since 1972. For more information, contact Charles and Karin Schultz, 702-636-8644 or visit

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