1851

Whether or not your business had a really great year, you can save money by making the right decisions before the end of the year. It&#39;s important to have your books in order whether or not you are going to file timely or extend. With so much attention paid to taxes, it&#39;s still important to remember the actual books and accounting decisions that form the data from which tax decisions are made. With that in mind, here are 6 end of the year tips for franchisors:&nbsp;

1. Get your books in order. 

The fourth quarter is a great time to make sure everything is in order before the end of the year. Not only will this put you in a good place as far as being organized in the new year (something on everyone&rsquo;s resolutions list), but you may be able to make decisions now that will pay off during tax time.

&ldquo;Spend the lower cost money on labor that will help keep your books healthy and your tax professional will have to do less work. Plus, you&#39;ll save on longer term compliance issues like audits and other such check ups,&rdquo; said Sharon Powills, Chief Financial Officer at No Limit Agency*.

2. Put a retirement plan in place for your business.

If you haven&rsquo;t already, establishing a retirement plan before the end of the year is something that should be on all franchisors minds in order to defer income taxes.

&ldquo;While we all know of 401K&rsquo;s and your ability to defer $18,000 to $24,000 every year, there are also other types of plans that allow you to defer $50,000 or even $100,000 or more. Sure, circumstances have to be right, but if you have had a profitable year you may be surprised with what you can put away in a retirement plan,&rdquo; said Tommy Lee, Partner-In-Charge at <a href="https://www.aprio.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=6-end-of-year-accounting-tips-for-franchisors-2704948" target="_blank" rel="nofollow">Aprio</a>.

3. Give out employee bonuses now.

Don&rsquo;t wait until next year to give out bonuses when you can reap the benefits in terms of taxes now and keep employees happy around the holidays.

&ldquo;I encourage clients to set up their bonus programs to pay out in 4th quarter. It&rsquo;s good for the employees and its good for taxes,&rdquo; said Lee.

4. Take a good look at your purchasing assets.

Since franchisors are typically bigger companies with larger purchases, this should be reviewed in the last quarter of the year.

&ldquo;One thing we always look at is purchasing assets and having them in place by the end of the year. Under code 179, as long as your purchasing is less than 2 million in assets, you can deduct in the beginning of the follow year,&rdquo; said Rick Coyne, accounting and auditing partner at <a href="https://www.withum.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=6-end-of-year-accounting-tips-for-franchisors-2704948" target="_blank" rel="nofollow">WithumSmith+Brown</a>.

5. Run a tax projection so you don&rsquo;t find any surprises later.

As everyone is reviewing the past year for successes and areas to improve on in the following year, franchisors should run their own tax projection to see where they stand. As you are getting your books in order, run a tax projection. You may be able to defer income to the following year, decreasing the amount of taxes you will owe this year.

&ldquo;We like to run tax projections to get an idea of where they are so there will be no surprises in the future and to see how many things we can do to bring the tax liability down,&rdquo; said Coyne.

6. See if you are eligible for credits. 

Primarily, the Research and Development credit should be looked into for many franchise brands. &ldquo;Since franchises are always trying to improve their products and service, they often are spending on research and development and are eligible to apply for the R&amp;D credit,&rdquo; said Coyne.

6 End of Year AccountingTips for Franchisors

6 End of Year Accounting Tips for Franchisors

1851 Franchise

What to think about as the year is coming to a close...

6-end-of-year-accounting-tips-for-franchisors

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

graphic image of a financial deep dive of americas swimming pools co.

America’s Swimming Pool Company Franchise Costs, Fees, Profit and Data for 2025

americas-swimming-pool-asp-franchise-deep-dive

image of The Cleaning Authority Franchise Deep Dive Article financial investment details

The Cleaning Authority Franchise Costs, Fees, Profit and Data for 2025

the-cleaning-authority-franchise-deep-dive

JEI Learning Center Franchise Deep Dive 2025 - 1851 Franchise

JEI Learning Center Franchise Costs, Fees, Profit and Data for 2025

jei-learning-center-franchise-cost-profits-data

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

6 End of Year Accounting Tips for Franchisors

MORE STORIES LIKE THIS