Prepaying Your Marketing Expenses Just Might Reduce Your Next Tax Bill
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Every December, we like to remind our clients and readers of a simple way to save taxes in the current tax year, while investing in their business’s growth for the subsequent year. If your business pays taxes on a cash basis, it is likely you could reduce your tax bill(s) by prepaying marketing (and other) expenses. (Please see a CPA or attorney for specific tax advice.)

Take a look at your marketing plan for specific items you could prepay to reduce your next tax bill. Some marketing investments (expenses) might include:


Since media rates often rise over time, it is often especially beneficial to negotiate and pay for media well in advance. Remember, this tax-saving idea only works if you file your taxes on a cash basis. If you file under the accrual method, it will not work for you. Also, make sure you are only prepaying expenses on items you need. It makes zero sense to spend $1,000 meaninglessly to save $300 in taxes.

Remember, there are exceptions to every rule. We are not offering tax or legal advice here. So please consult with your tax attorney or CPA. As a famous person once observed, “I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.” Let’s legally pay less in current-year taxes when we can.

Stewart Gandolf
Chief Executive Officer & Creative Director at Healthcare Success
Over the years Stewart has personally marketed and consulted for over 1,457 healthcare clients, ranging from private practices to multi-billion dollar corporations. Additionally, he has marketed a variety of America’s leading companies, including Citicorp, J. Walter Thompson, Grubb & Ellis, Bally Total Fitness, Wells Fargo and Chase Manhattan. Stewart co-founded our company, and today acts as Chief Executive Officer and Creative Director. He is also a frequent author and speaker on the topic of healthcare marketing. His personal accomplishments are supported by a loving wife and two beautiful daughters.

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