Is it too late to start with a tax accountant this year, or should I wait until January?
Short answer
It's not too late, and starting before December 31 gives you more options, because many tax-saving moves, like opening a Solo 401(k), have to be in place before the year ends.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
Waiting until January is the most common way creators lose a year of savings. Once the year closes, we can still file your return, but most strategies for that year are off the table.
What we can still do if you start before December 31:
- Catch up your books from January to now (free with onboarding) and find write-offs you missed
- Set your home office deduction up the right way
- Time business purchases, like equipment you were going to buy anyway
- Open a retirement account such as a Solo 401(k)
- Look at an S-Corp election. Setup takes a couple of months, and in some cases an election can apply back to the start of the year.
- Get your next quarterly estimated payment right, due January 15.
If it's already January, you're not out of luck. We file last year's return and start planning the new year from day one, which is the best position to be in.
Every situation is different, so on your consultation we look at your numbers and tell you what's still possible this year.