Before the year ends, there are things you should do to get your business’s finances in order. As a small business owner, you owe it to yourself to make sure you’re doing everything to stay ahead of the game for the new year!
Track All Income and Expenses
The first step in your year-end prep is ensuring you’ve tracked every dollar that came in and went out your business. If you don’t already use an accounting app like Quickbooks, sign up and link it to your business bank account. This will save you a ton of time, especially when tax season hits.
Update Contractor Information
If you’ve paid contractors or employees, you may need to file a 1099 or W2 with the IRS. Make sure you have their up-to-date mailing and email addresses to avoid any issues with filing.
Consider Last-Minute Tax Strategies
Got a significant net profit this year? There’s still time to reduce a high tax bill! Consider prepaying business expenses or purchasing equipment you were planning to buy in the new year. This strategy can help lower your taxable income.
Enter Cash Transactions into Your Accounting App
If you’ve been handling cash transactions manually, now’s the time to enter them into your accounting app. While it can be time-consuming, keeping these transactions organized is key to avoiding financial chaos. Hiring someone to do it for you can be costly!
Don’t Forget About Quarter Four Taxes
Quarterly taxes are due January 15. Make sure you’re ready to meet this deadline so you don’t run into any unnecessary tax penalties.
Wrapping up these tasks before year-end will help you stay ahead and make tax season smoother!
Tamara Knows Taxes
Hi, I’m Tamara. As a previously a published author I received a degree in accounting after moonlighting as a tax preparer. Outside of the tax world, I still love writing, I have fascination with food, adventure, and living life the best way I know how