In order to make sure that your business meets the long-term and short-term financial goals thoroughly, you must know how to do effective business tax planning. It is particularly more important when you are going through an economic downturn. Proper planning in advance helps you to keep your business financially solvent. While you are preparing for year-end tax planning, you need to work out different ways on how to reduce your taxable income (on paper) and how to make the best use of the even the smallest possible (very little known) deductions. Those who never plan in advance often forget to use some of the less common deductions and thus end up paying more in taxes. Following are some of the most important things that you must know in this regard.