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Year-End Write-Offs That Could Change Your Financial Statement

With the calendar year drawing to a close, many businesses are looking at what can be done to improve their financial position for the new year. According to CNBC, there are a number of inventory and asset-focused activities that your small business can complete this month to help take advantage of tax write-offs, including: (1) Buying new equipment (2) Buying used equipment (3) Donating inventory (4) Ordering next year’s supplies Each of these activities can impact your financial statement, but they’re not the only actions that can make an impact on your bottom-line. At year’s end, your business may also face the difficult decision of needing to write-off excess or aged inventory to have financial statements more accurately reflect the financial position of your inventory. Although the progressive option of writing assets off can mean less taxes at year’s end, these write-offs can actually be costly for your business overall. When it comes to making the correct inventory and asset decisions for your business, having as much data as possible is essential to the process. Implementing inventory tracking, like Wasp Barcode’s Inventory Software and Systems, helps you track the goods your business sells to avoid costly year-end write-offs. In a similar way, asset tracking provides a holistic view of where your assets are located and the condition of those items, allowing you to make smart decisions about when to purchase equipment and other fixed assets. As 2014 draws to a close, consider not only what write-offs could best benefit your business, but also how your business is gathering the data necessary to make these key business decisions.