Stop! Do this before you make big business purchases!
Does your business need new equipment or to make a large purchase? Many small business owners forget this small step that can save them big money:
Talk to your accountant first. It may seem like a hassle but giving your accountant a heads-up about a large purchase (anything over $2500) has some significant upsides!
Firstly, unless you’re watching your numbers closely, your accountant probably has a better understanding of how a large purchase will affect your cash flow position.
Secondly, letting your accountant know in advance means that they’ll be able to capture that purchase as an asset instead of an expense, which means your books will be more accurate, your business will grow in value, and you will be able to maximize your tax savings!