Another year is almost in the books, but before you close those books, consider if there is anything you can do before the end of the year to improve your 2015 tax situation when it comes time to file.

Filing day 2016 is too late to do much about your 2015 taxes. The time is now to get your house in order in preparation for the upcoming tax season. Most things you can do to change how you stand with the Internal Revenue Service must be done before the end of the year. Here are some possibilities to consider.

Get in a tax-time frame of mind

First and foremost, make sure your business records are up to date and organized. Not only will this simplify the job at tax preparation time, it will give you a picture of where you stand and help you decide if anything needs to be done before the end of the year.  

Tax codes are always changing. Have a chat with your accountant or tax preparer about ways your business changed in 2015 and how the tax codes have changed. If you prepare your own taxes, pay attention to financial news or do some Internet research on changes to the tax code that took effect in 2015.

Assess your income

Determine if it would be to your advantage to defer some income. When figuring out what you owe in taxes for 2015, every dollar you bring in before Dec. 31 is considered. Any money that comes in after Dec. 31 counts as income for 2016, even if the work was done and the invoice sent in 2015. If you’ve had a good year and predict either a decline in your business or a drop in taxes in 2016, let those customers who owe you know they can take an extra couple of weeks to pay their bill.

If the opposite is true and you’d benefit from having more income in 2015 than in 2016, offer clients an incentive to pay outstanding invoices before the end of the year. If having more expenses this year would help their tax situation, they might just thank you.

Review your purchases

How do your 2015 purchases compare to 2014? If you need to increase 2015 deductions, purchase items for your business now that you’ll need next year. Were you thinking of adding a trailer jetter to take on more municipal work next year? Maybe sooner is better than later. What about the office? Would a new computer, printer or copier improve efficiency there? How about software, toner and other items needed to make that equipment hum? Consider purchasing now. And don’t just think major purchases — stock up on copy paper, postage stamps, bathroom tissue, chemicals and restroom repair parts. It all adds up.

Deduct or depreciate?

For major purchases you’ll need to consider how to structure your deduction, whether an immediate write-off is best or spreading out the depreciation over years. Either way, for any 2015 tax benefit, equipment must be purchased and in use by the year’s end. Be aware, however, that large items don’t have to be depreciated like they once did, but the cost of items you can deduct may have dropped. The total amount you can elect to deduct under section 179 for most property placed in service in tax years beginning in 2014 generally cannot be more than $500,000.

Find more deductions

Other ways to boost deductions include prepayment or early payment of equipment maintenance contracts, subscriptions or supplies you order on a regular basis.
Check your inventory of paper and chemicals for write-offs. Goods that have gone down in value since their purchase because they have become damaged or obsolete can become a deduction. Check with your accountant or tax preparer.

Consider who prepares your taxes

Maybe you’ve been a do-it-yourselfer but think it’s time to hire someone else to prepare your taxes. Or maybe you haven’t been pleased with your tax preparer in the past. The time to find someone is now — not in the middle of tax season.  

To find a tax preparer you can trust, get recommendations from other business owners. Call some tax preparers to get a feel for their philosophy, personality, availability and hourly rate. If your accountant prepares taxes for 10 beauty salons and you, you might want to look around for someone who understands the realities of your world a little better. And try to find someone who will be available to advise you throughout the year, not just on the few winter days when they are working on your return.  

If you handle tax preparation yourself, were you happy with the software you used to file electronically last year? If not, do some research on software and purchase a new package or upgrade your existing one now so you have time to learn how to use it effectively.

Consider other year-end strategies

Make payments to your retirement plan or set one up before the year’s end to reduce your income for this year. Check the contribution limits for your type of plan.

Discuss the best strategy with your financial planner or accountant.

Boosting charitable deductions can improve your tax situation. Only contributions made to qualified charitable organizations can be included as tax-deductible donations, however, so when you make a contribution, ask the organization whether they are tax-exempt. If you’re not sure about an organization, Exempt Organizations Select Check is an online search tool at IRS.gov allowing users to search for and select an exempt organization and check information about its federal tax status and filings.

If you are planning to claim any in-kind contributions as charitable income tax deductions, you can find the fair market value of qualified items in IRS Publication 561. If you are making any charitable income tax deductions for a single item with a fair market value of $5,000 or more, a separate form must be completed.

Remember, the more you think about taxes before the end of the year, the less stressed out you’ll be in early 2016. Consider it a Christmas gift to yourself that will last well into the new year.