Seriously? Yes, it’s that time of year. Here’s our End of Year Checklist.
Can you believe it? Yep, it's already that time of year - tax prep time. We know, you're super excited. Before you rush and grab that box of receipts - put yourself at ease with our end-of-year checklist.
1. Get your W9s Prepared
Have all of your W9s completed and submitted so that anyone you paid for services or labor receives a 1099
Curious about who should receive a 1099? Check out the free resource below.
https://weareindy.com/blog/who-receives-a-1099-form-complete-list-of-the-requirements
2. Make sure you’ve paid enough in state and federal taxes.
-Businesses or business owners are required to pay federal estimated taxes.
-The estimates are based on projected taxable income and can either be paid directly to the IRS or through the business owner's payroll deduction.
-If you are not sure if you have made the necessary payments, we can help!
-Don’t put this task off, as we only have until the end of December to make or adjust payments.
3. Structure Your Business Correctly (you still have time)
-If you own a small business and you are profitable, you likely need to make an S-Election to elect to be taxed at a lower rate. -LLCs and sole proprietors are taxed at the self-employment rate which is about 15% more than an S Corp.
-This may sound complicated, but it isn’t!
-If you would like to learn more, reach out and we can explain how to make the change and what the rules are.
4. Develop a strategy for profit and losses?
-If you are a profitable business, you may be able to lower your tax burden by making some purchases before year end that will provide some tax savings.
-You might be looking to make a larger purchase in the future and need lending options.
-In this case you may want to report more income on your tax return.
We can help you determine the best tax strategy based on your business goals!
5. Maximizing your tax deductions.
-There are quite a few tax deductions that business owners are not aware of.
We can help identify these expenses and make sure you take full advantage.
6. Get your books are in order.
For current clients, we have you covered!
A few things we do to wrap up the year are:
-Make sure all accounts are reconciled to bank, credit card, and loan statements
-Double check payroll reports match W2’s being issued
-Issue W2’s and 1099’s
-Ensure the balance sheet is completely reconciled and all expenses and income are correctly recorded
-Work with CPA to add in depreciation for the year
Need Help?
Are you worried you don’t have your checklist done? Here at Cornerstone Accounting Solutions, we can provide the services you need to be prepared.