13 Dec 5 Purchases Every Small Business Should Make Before Year End
End-of-year small business purchases present a rare opportunity. Timing matters when spending your hard-earned money. Sometimes, you can get tax benefits. In other cases, you may be able to take advantage of sales. Either way, the end of the year can be the best time to make some investments. Here are five end-of-year purchases that may benefit your small business bottom line.
Equipment is a great option for your end-of-year small business purchases. By the time December rolls around, you have a strong idea of where your budget stands. This makes it easier to spend extra cash rather than projecting that you may have money to fund equipment investments.
The ability to take full advantage of Section 179 deductions is another reason to consider equipment when making end-of-year small business purchases. Section 179 is a tax law that allows businesses to deduct expenses on equipment, vehicles, and similar assets. There are many nuanced rules on exactly how the deduction works. However, spending at the end of the year – up to the limits of the deduction – can be a great way to maximize value.
2. Major, Critical Expenses
Just about every small business owner has been there: There’s a major expense for something that’s key for the business, but the budget is straining to handle it. The end of the year is often the best time to make this kind of investment. It’s a period when you’ll often have the clearest idea of what your budget looks like without having to project too much into the future. This lets you handle the costs more easily and accurately predict how much financing you really need.
Any major purchase that creates fiscal uncertainty is often a fit for end-of-year small business purchases. It’s a time when you have the strongest idea of your annual income and expenses. That’s not the only reason to consider the end of year for major, critical items. USA Today recommended the end of year as a great time to spend because increasing annual expenses improves your tax deduction situation.
3. Business Services, Including Tech Subscriptions
Signing up for business services, such as a new cloud app, can be a great option when it comes to end-of-year small business purchases. You can often deduct the startup fees and similar expenses for tax purposes. On top of that, many vendors will offer special deals near the end of the year as they work toward sales quotas and similar goals.
The cost of one year’s vehicle model often drops when the next year’s edition is set to hit the market. Auto dealers often offer great end-of-year deals as they try to clear inventory to make space for new models. You can use this opportunity to get a great price while also taking advantage of potential tax benefits.
5. Technology Hardware
End-of-year sales, including holiday-related deals, are common in the tech sector. From upgrading your computers to getting new phones, tech equipment is a natural fit for end-of-year small business purchases. Some tech can qualify for Section 179 deductions, and the kind of deals you can often get at the end of the year can lead to serious savings.
Using Financing to Support End-of-Year Small Business Purchases
Of course, you can only engage in end-of-year small business purchases if you have the cash on hand. Small, short-term financing from QuickBridge can help you get the capital you need quickly to create long-term value through strategic purchases that put you in a better position for next year while keeping costs under control.
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