Brooklyn's Progress
January 2005

There’s no time more stressful for small business owners then the end of the year.  This period of juggling numbers, sorting out income and finding the most efficient tax breaks can confuse anyone.  To avoid the cash crunch, many of today’s businesses are turning to invoice discounting services like the The Hedaya Capital Group, Inc. in New York for some much needed help.

“There’s never a greater need for finding fast solutions to cash flow problems then at the end of the year,” said Jack Hedaya of The Hedaya Capital Group, Inc. in New York. 

Mr. Hedaya, a finance and working capital expert, offers these five tax-saving tips to help New York small business owners and entrepreneurs deal with the year-end cash crunch:

• Purchase necessary equipment and technology.  If you have any plans for purchasing equipment or computers in the next year, making those purchases this calendar year will allow your business to write off the taxes against this year's income.  The majority of small businesses can deduct up to $24,000 in equipment purchases with the option of an immediate write-off or one spread out over years.
• Start up, or contribute to, your retirement plan.  Payments made to your business’s existing retirement plan before the end of the year can reduce your income for the year.  “If you do not have a retirement plan set up for you or your employees, consider starting one,” said Hedaya.  “There are many options available, including a 401(k) and a SEP-IRA, depending on what best fits your business.” 
• Delay or defer income.  Any income a company receives during early January instead of late December can cut your tax bill.  Income received in early January, will not be taxed until the following April.  “If lower income tax rates are predicted for the new year, delayed income makes a lot of financial sense for many business owners,” said Mr. Hedaya.
• Increase Expenses.  Similar to delaying income, increasing expenses at the end of the year can reduce income and maximize your tax deductions for the year.  If there is an upcoming need for goods or services, anything from phone plans to office supplies, purchase them now.
• Use an invoice discounting service.  Many small business owners regularly use an invoice discounting service like The Hedaya Capital Group to maximize their year-end cash position. While year-end tax tips can apply differently to each individual business, your professional advisor can help in discerning the best tips for your business. A strong cash position is a universal must for all businesses.

The Hedaya Capital Group owns and manages the New York branch of the Interface Financial Group. The Interface Financial Group provides invoice-discounting services to small businesses in Canada and the United States through a network of local offices. The company, which was founded in 1971 by John Sheehy, has headquarters in Markham, Ontario, and Irvine, California.  If you would like to learn more about specific services, please contact Jack Hedaya at 212-233-0044 or visit http://www.interfacediscounting.com/ for more information.