In this episode of the eCommerce Lifestyle podcast, Anton shares how to lower your taxes before the end of year.
These are some tips from Anton. He is not an accountant but these are things that he has done for years on his businesses.
Have a great end of the year!
Hey. What's up, everybody? Anton Kraly here and welcome to another episode of the E-commerce Lifestyle podcast. So it has been a while. I'm recording this. I don't even know what day it is. I think it's December 27th or 28th. Either way, I just got back from spending the past, almost full month, of December being abroad. I was in Vietnam for most of the month. And then I was just in New York for Christmas. And yesterday my family, we got back to Austin, Texas where I'm living now. And man, it's been a crazy month.
You know every time before I travel and go somewhere cool and do something fun, I always think this is such a good opportunity to connect with everybody from E-commerce Lifestyle and Drop Ship Lifestyle. And I always think I'm going to record so many podcasts and I'll make a bunch of videos showing people what life is like on that side of the world, talking about geoarbitrage and all that fun stuff. Then, I'm on vacation and traveling around and doing my thing, and before I know it I'm back and I haven't connected with you guys at all. So I apologize for not getting the episodes out, but that is why. Definitely a good trip but super stressful with the baby.
So I don't know about anybody listening to this, but yeah, the reason we went to Vietnam was for our sons first birthday. And over 30 hours of total travel time each way is not fun even when you're sitting in first class. So if you can avoid that, I recommend avoiding it. But we made it, we survived, we're back. And yeah, we kind of get back to the regular schedule now, which is why I wanted to record this podcast today. As, per usual, I'm in my car driving into the office to check up on things, get some work done, and maybe work a half day over there. So what I wanted to talk to you about today to kind of share some value is something that's very important for everybody that made money this year.
Hopefully, that's you. Hopefully, you have your own business, whether that be a sole proprietorship, an LLC, a corporation, whatever, it doesn't matter. Hopefully, things worked out and you turned a good profit. So again, at the time I'm recording this, we have a few days until the end of the year and that, for most people, is when taxes get finalized and the time comes to figure out how much money you owe the government. Now, never fun, but it's a reality of being a business owner so it is what it is.
With that being said, you still have a few days left to lower your tax liability. Now, this is for all my friends in the States because that's. Obviously, where I do business. But I wanted to share some things that we do that help to, again, lower our tax liabilities. So, basically, what we try to do is spend more money, and we try to, I guess you can call it front-load, our expenses for next year so that we can lower the actual amount of profit that we made on paper. And again, try to spend money now so that it's not going to be showing up on our tax returns. Right? I'd rather spend it and write it off as an expense and not have to pay the extra tax just because.
So some of the ways that we do this are looking at all the tools that we've used over the past year, so any software tools. For example, if you use Shopify as your platform and if you use Klaviyo as your email autoresponder, whatever tools you may use, go ahead and if you're not already paying on annual billing terms, reach out to them and say hey, do you guys have any annual billing plans. Not only can you probably save at least a couple of months worth of billing because typically, when you switch from monthly to annual, you save about two months. Because they want their money upfront, they give you that little incentive. But also, you'll be spending that money now so you can write it off now rather than waiting to next year.
So again, look at any softwares, any tools you use for that. If you have any pending payments, maybe to different vendors, different people you've purchased products from, different shipping companies, anyone that, basically, you owe money to and can pay now, maybe it's affiliates, partners, whoever, go ahead and pay them before the end of this year so you can write it off this year. Again, lower your tax liability.
Some other things that we do that I think can apply to probably everybody listening to this os try to prepay for ad costs. So how much you want to do is kind of based on where you are comfortable. You should know, at this point, how much money you spend on ads pretty regularly. And what you could do is go ahead and you can use the manual payment option on Google. You can go ahead and give Google a bunch of money now that they'll draw on from your balance as you spend money on ads throughout this you're, maybe only in the next few months. Even if you prepay for a month worth of ads at your current spending level, then boom, that money is gone now. It comes off of your top line and yeah, you pay less in tax.
Another thing you could do, the same things with Facebook, you can go ahead and prepay for more ads there, pretty much any ad platform you use. If you have any relationships with different blogs, wherever it is that you're spending money, again, the whole point is to try to give them more of it now before the year ends, that way your bottom line net profit for the business will not show as high because you spent the money. And you;l be able to pay less in taxes, which is always a good thing.
So I should just say, real quick, that disclaimer, I'm not an accountant, so don't take this as legal advice. This is just some things that we've done throughout the years to lower our tax burden. And I guess, either way, you're probably still going to have money left over depending on how much profit you made and you will have to pay some tax. But at the end of the day, that's a good thing. To means you're profitable. It means you're doing things right. So good on you for that.
That's it guys, just a quick episode today. I'm still jet-lagged like crazy even after being back in New York for a few days. I think because it was Christmas, we were just out and about. We took the baby to Rockefeller Center. We went all around Manhattan to catch up with a bunch of friends, has a whole day celebrating Christmas, so I kind of missed my chance to even have jet lag in New York. Now, back in Austin, I'm totally shot. So yeah, I'm going to go get some coffee, I'm going to start the day. And I wish all of you a great end of the year and an amazing 2019. I'll be back regularly now with podcasts. I don't have any travel plans for next month or so. So look of a new episode soon and I will talk to you all in the next episode of E-commerce Lifestyle. Thank you, everybody.
Please log in again. The login page will open in a new window. After logging in you can close it and return to this page.