4 End of Year Pointers- We need to take the time to do some tax planning so we can be ready for the tax deadlines in the spring.
Here are some tips to help close out your small business for the year:
Review subcontractor data.
Make sure you have your subcontractor’s complete address and either their Social Security number or Federal ID Number. To prevent problems in obtaining this information in the future, be sure to send each new independent contractor a Form W9 upon hiring.
Submit expense account data.
You and your employees should submit an expense account data report and accept a reimbursement check prior to Dec. It’s easy to create an expense account form on Excel.
Evaluate your financial standing.
Review your profit and loss, balance sheet, and general ledger for accuracy and to ensure that all transactions have been recorded. Check the accuracy of accounts receivable and accounts payable. Write off bad debt for customers who are uncollectible.
Review personal expenses.
4 End of Year Pointers- If so, find the receipts or cancelled checks and log in those expenses to your company’s books. More taxpayers pay extra taxes needlessly because they overlook business expenses paid from personal funds. Be sure to search for bookkeeping services to help guide you through this process.