At the end of each year, entrepreneurs miss a lot of opportunities to save money. With these 5 year-end tips for entrepreneurs, you can enter 2017 with a feeling of peace.
Tip 1: Check your insurance
Often, entrepreneurs run great risks while it is easy to insure. Make sure that you have well covered the risks. In addition, it is important that you regularly check whether the insurance fits your situation. You may have moved, have you adjusted your assortment or your sales have risen sharply. It would be a pity if you discovered that you were insecured after an incident and that you get a benefit from your insurer that is significantly lower than you expected.
Tip 2: Enter a feature
You can already take expenses for the coming years as costs on 2016 business results. This can be the result of your business activity this year. Consider the maintenance of your business premises, the pollution of your business area or the cost of a reorganization.
For this future expense, you can already provide a provision that will be charged to business results by 2016. This will save you tax savings on these future expenses.
The conditions for such provision are:
- Future expenses are due to the occupational activity last year.
- It is quite certain that you will have to make these expenses in the future.
- The expenses can be attributed to the period before the balance sheet date.
You can do this for all costs incurred that took place until the balance sheet date of 2016 and also for costs that were due before 2016.
Tip 3: Plan your investments
Do you plan to invest well in the short term? Then it’s useful to check if you still need to do this investment or to delay it until 2017. A spread of investment over several years usually leads to a higher small-scale investment deduction, the KIA – and that gives a nice tax benefit . To qualify for the KIA, you need to invest more than 2,300 euros and up to 311,242 euros in assets.
See below a KIA percentage per investment table.
|€ 2,300 to € 56,024||28%|
|€ 56,024 to € 103,748||€ 15,687 (fixed amount)|
In excess of 103,748 euros, the deduction drops by 7.56 percent of the investment amount.
It is therefore beneficial to spread investments over two years.
Will you stay below the investment threshold of 2,300 euros this year? Then it’s wise to get the 2017 investment ahead and to do it this year, especially if you stay under the threshold with those investments in 2017. Two times investing 2,300 euros does not yield any deductions. A single investment of 4,600 euros yields an investment deduction of 28 percent in 2016, a deduction of 1,288 euros.
Tip 4: Optimize valuation of work
Work in progress is work for an assignment you have done but you have not yet submitted an invoice. This bill amount must be included in the balance sheet in 2016 (in part) as progressive profit. This section determines you by determining which percentage of work has already been done. This percentage is taken up in the balance sheet. This provision also includes the constant overheads.
Imagine: you are building a machine for 270,000 euros. It takes three years to build this machine and you have agreed with the customer to invoice it in the fourth year.
Tip 5: Return VAT on bad debts
It is increasingly becoming easier to recoup VAT receivables. The right to refund is incurred when the invoice can not be determined. The Tax Plan 2017 prescribes that from 1 January 2017 that irrecoverability can be determined if a customer has not yet paid after one year after the claim has become public. This term also applies if the contract for the supply of goods or the provision of services has been canceled, terminated or dissolved and as a price reduction or remission after delivery of the goods or the performance of the service.