It’s the holiday season!
But let’s not forget that it’s also the season of tax preparation.
Getting ready for tax time can be a chore, and even stressful, especially if you’re starting as a small business owner going through the first few rounds of tax time. Keeping up with the constant tax changes and nuances can be daunting for a small business and even time consuming.
Here are just some of the biggest things to keep in mind as you wrap up your business’s year:
Make sure your company gets all of its expenses in by the end of the year and maximize your deductions.
Keeping track of all your business expenses can possibly get you an increased amount of deductible expenses by the end of the year. Just remember to keep your persona and business expenses separate, especially if you’re a small business owner.
If there are any big capital purchases to make, now is the time or even if there are any bonuses to pay, pay them before the end of the year.
The end of the year is a great time for making final purchasing and financial decisions, whether that means buying more assets or paying your employees their end-of-year bonuses, but one of the important things to remember is that each of these activities might be subject to different taxation, depending on the circumstances.
Collect any W-9 forms from consultants before the end of the year to get 1099’s out by January 31st.
It’s about that time of the year when all employers and employees are busy working on tight-deadlines and making final business decisions. Doing taxes have deadlines too, and it’s important to review any expenses paid to consultants and collecting W-9 forms from them. Make sure that everyone is submitting required forms on time so that, when the time comes, filing taxes is a breeze.
Want to see what else you might want to keep track of?
Join our mailing list and receive our free year-end checklist. The checklist provides a guide to what is needed to help get things ready for the year-end, whether you are doing the accounting in-house or using an outsourced accounting firm.