Happy New Year, it’s tax season and you are probably hoping to avoid thinking or dealing with your taxes as a small business owner. But regardless, tis the season with some quick tips to get you prepped and feeling confident during tax season.
- You or your bookkeeper reconcile your books for the entire previous year. Payroll review of cash balances, payables, receivables, and year to date summation.
- If you moved your business during the last year, make sure you’ve notified all banks and accounts and companies related to payroll, benefits, mortgage as well as your clients. If not, it could cause a delay in finalizing your taxes.
- Double check that you have sent all contractors and freelancers their 1099s by February 2nd. Also audit your W-9s to ensure that they are the most current for accurate reporting to the IRS.
- Make a list of any clients that you should be receiving a 1099 this year and check income totals immediately to verify that the 1099 is correct.
- Check and compile all your medical receipts and any reimbursement. Since the Affordable Care Act, you will need your health insurance information ready to report in your tax returns.
- If you have business-related donations, these should be on hand as well.
If you have a dedicated accountant or bookkeeper, request a tax projection for the next year based on income for the last year and any deduction opportunities. With small businesses there are some tax breaks and programs that you may be eligible for, which your accountant should be aware of. You may also be able to reduce your taxable income and bill by making a tax-deductible contribution to an IRA. Whomever advises you on your finances for your small business, it is important that they guide you to take advantage of all tax related opportunities.
