Skip to main content
Stesso

Strategically Manage Income (Delaying Deposits)

2:20
3:00
2.4K views

At 2:20 in

This one SIMPLE tax SECRET is a GAME CHANGER for YOUR BUSINESS

Watch on YouTube

What happens here

Another strategic move, which should be carefully considered based on your business's cash flow needs, is to temporarily hold off on depositing accounts receivable or other earned income until after January 1st of the new year. Instead of depositing funds immediately into the bank, you can hold onto checks or delay invoicing to push that income into the next fiscal year's accounting. This tactic can effectively reduce your current year's taxable income. However, it's crucial to ensure this doesn't negatively impact your immediate cash flow or ability to cover ongoing operational expenses. This strategy is about shifting when income is recognized for tax purposes.

Goal: Reduce current year taxable income by deferring revenue recognition

Tools and materials

  • Accounts Receivable Reports N/A — Identifying outstanding payments that can be strategically managed
  • Cash Flow Projections N/A — Ensuring the business can meet obligations even with delayed deposits

What they say

Hide

company by purchasing new equipment, new supplies, um upping some of the quality of the services you offer. Or you can hold off in adding deposits into your company. So your accounts receivable maybe you have them instead of putting them into the bank just hold on to them till after the first of the year. That way then those expense those deposits go on to the next year's accounting system.

Auto-generated from the video audio.