As the year winds down, whether you prepare your own taxes, or you have someone do them for you, it’s important to make sure you’re prepared for your end of the year taxes. Let’s face it, this is likely the last thing you want to deal with, but it is important.
Here are some quick steps to take right before the fiscal year ends.
Get a Snapshot of Your Business
Your P&L, Profit and Loss statement, is probably one of the reports that you look at the most throughout the year, if it isn’t, it should be! It’s especially important to review this document leading up to the end of the year. This gives you an overview of your businesses financial performance. Make sure to check your revenue, expenses, how much cash you have and how many receivables you have.
Compile the right information
After you have combed through your P&L report and found where your business did well and where you can improve, it’s time to get down to tax preparation. At this point you need to gather and finalize all vital information regarding your returns. Make sure to pay your vendors and contractors in full by the end of the year, you may need to submit W-9 forms for contractors as well as send them 1099-MISC forms by January 31.
If you have employees its equally important to decide on employee bonuses, review current and past employee information within your payroll system, and review insurance policies and coverage rates. As this preparation can be a daunting task, finding a local accountant to outsource these tasks to may be your most efficient option. Leaning on your local CPA gives you the peace of mind you need during this stressful time, to focus on the upcoming year and ways to improve your business moving forward.
Plan for the new year
As you plan for the following year, remember to not only review your P&L reports but to review your client list and make new goals for the year. Think about reviewing your client list and making sure all the information is up-to-date.
This will give you an opportunity to clean up your lists in preparation for the year ahead. One of the most beneficial tasks will be coming up with business goals for 2018. Making goals for next year will keep you motivated and focused. Be sure to continually review your goals to stay on track and adjust accordingly.
With 2017 coming to an end, remember that preparation is key to a less stressful tax time. Partnering with a concord small business accountant is a great way to partner with an expert that understands your business and stays abreast to all financial aspects to encourage growth.