Submitted by angrybird7677 t3_zzswm0 in explainlikeimfive
buildyourown t1_j2eennc wrote
Companies don't want to carry cash over to the new year. Then its profit that gets taxed. Spend it on business expenses and it is tax free. Ideally, you'd spend that money on investments that improve the company's performance. I work in manufacturing, there is always a rush to spend your profits in Nov/Dec to update equipment.
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