How Roofing Companies Can Unlock Tax Advantages Before Year's End
As the year comes to a close, roofing companies have a unique opportunity to optimize their tax positions and pave the way for a prosperous new year. While we're not licensed tax professionals at RAES, we have a few recommendations for what we've done in our roofing business at the close of each year. Always consult with your accountant, but here are six strategies to consider before the year-end.
Capitalize on Section 179 Deductions.
Consider making a strategic asset purchase before the end of the year. Section 179 deductions allow businesses to deduct the total purchase price of qualifying equipment and/or software purchased or financed during the tax year (like when you buy an annual plan with RAES!)
Also, think about purchasing necessary roofing equipment, tools, or vehicles before the year-end to maximize deductions.
Understand Depreciation.
Understanding the various depreciation methods can help in optimizing deductions. Track and manage your roofing machinery, vehicles, and buildings, ensuring you make the most of depreciation deductions.
Take Another Look At Bonuses And Employee Benefits.
Contribute to retirement plans, such as a Simplified Employee Pension (SEP) IRA or a 401(k), before the end of the year. Consider year-end bonuses or profit-sharing distributions to employees, as these may be deductible expenses. Our software helps to manage your team, sales pipeline, and labor, helping you reward your team based on performance while providing an opportunity for optimized deductions.
Do A Year-End Review Of Income, Expenses, and Potential Deductions:
Review your company's income and expenses, and identify potential deductions before the New Year. Ensure that all eligible business expenses, such as maintenance, repairs, and professional fees, are properly documented and accounted for. Ensure your customer accounts are current and track customer account statuses in real-time, streamline invoicing and automate payment processes. With RAES, you can focus on growing your business while ensuring timely payments and accurate financial records.
We understand the challenges roofers face in managing their finances effectively, and our roofing software and consulting services are tailored to meet the unique needs of roofers, providing the tools you need for success. That's why our comprehensive roofing software and consulting services are designed to empower your business with a suite of features that not only streamline your operations but also contribute to reducing your tax liability through the help of your trusted tax professional.
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