Summer has ended and Fall is creeping in, slowly making way for Winter. This is the time of year that small businesses in the Raleigh area should begin planning for year end reports and tax payments.
However, many business owners are focused on other aspects of their company and often neglect preparing for year end, only to find themselves in trouble come tax payment time. Our small business accountants have been seen poor planning and execution from many business owners through the years, and have come up with some helpful tips to keep your business headed in the right direction.
Since we are now in the final quarter of the year, it is time to get your business affairs in order so you can bring in the new year on track.
Get your documents in order. Know which accounts are outstanding and be sure to close them out. Don’t be caught with outstanding invoices on accounts that you can reconcile.
This is a good time to prepare your balance sheets, cash flow statement, and your profit and loss statement.
Again, the key is to get ahead of things prior to December, and you’ll have an easier time determining your business’s standing.
Mid January is the time that your final quarterly tax payment is due. Avoid penalties on your tax payments by making sure they are the full amounts and are paid on schedule. Get ahead of your tax requirements early to know exactly what your last quarterly statement will be. This will ensure you aren’t paying higher expenses than expected at the end of the year.
Before the year closes, make sure that all your employee payroll is accurate. This will help your business deliver your employees W-2 forms promptly and correctly. Any taxes, social security or other required withholdings should be accounted for prior to year end. Offload some of your annual revenue by giving out bonuses before the year closes to avoid higher tax fees.
Year end is a great time to offset some of your required tax payments by purchasing new equipment for your company. The deduction is mainly for small businesses and must be obtained and used prior to December 31st to qualify.
If your profits are increasing, then potentially holding off on receiving revenue can be a good thing. This increase in profit may push you above your expected tax payments and ultimately cause you to pay more than may be necessary.
Giving to a charity is a great thing regardless, but for businesses, this provides an opportunity to offload equipment, inventory, or any other contribution that can provide a tax deduction.
Our firm is experienced with year end accounting and other areas of small business accounting service. Let our team help guide you through the difficult time of closing out your business’s end of year finances. Call our accountants at 919-420-0092 or complete the online contact form to schedule your consultation.