AVOID THE YEAR-END CRUNCH! GET AHEAD NOW.
As we wrap up the third quarter, here are a couple of tasks you will want to start on to avoid crunch time at year-end.
START REVIEWING YOUR 1099 LIST NOW!
Now is the perfect time to make sure you have all of the information you need to issue 1099s. Make sure you have a W9 Form on file for anyone you have paid (or anticipate paying) over $600.00 to during the tax year. If you cannot obtain a W4 form from the vendor, will need to request that they provide their legal name, address, and social security number or Tax ID number for your file. Also, make sure your accounting system is set up and the 1099 vendors and accounts mapped properly. If not, now is a great time to create the format.
MAKE SURE YOUR ACCOUNTING IS COMPLETED AND REVIEWED FOR ALL THREE QUARTERS.
If you’ve fallen behind on your bookkeeping entries, or have just not paid much attention to your personal or company’s books for the year, NOW is the time to make sure everything is updated through the 9/30. If you haven’t been running comparative year or profit margin reports, get to it!! Once you have everything updated, you will have a clearer picture of your business trends for the year and can project the trajectory of future earnings and expenses for the year. This is also a highly important precursor to Item 3 below.
MEET WITH YOUR CPA OR TAX PREPARER!
I cannot emphasis the importance of this task enough! Now is the time to send your tax professional a request for a phone, virtual, or person meeting to discuss the year-to-date accounting and tax saving strategies! Doing this can sometimes save you thousands in taxes. By meeting with your accountant now, they can make suggestions based on your 3rd quarter numbers and tax structure, such as adjustments to pension contributions and wages. Meeting with them in the early 4th quarter will give you time to implement any changes the accountant may suggest before the end of the year. A quality tax accountant will be happy to meet with you prior to year-end, and will understand the significance of this step.
Paying attention to you accounting now will save you tons of stress at year-end and may even save your tax dollars! If you need accounting assistance, feel free to contact us.
Writer: Heather D. Richard