Can you believe it? Is your business ready? The holidays are hear and with them come all the much loved family gatherings, cold weather and festive holiday times. No doubt about it, the holidays bring joy to most. However, for business owners this also means making sure all things are in order as we close both the 4th quarter and the end of the year. While the holiday season are often a busy time for business owners, one must still take the time and prepare for the upcoming tax season. Here are a few tips to help ensure that your business is ready.
- Review your books – Set aside some time and go over the profit and loss reports, balance sheet, and ensure that your general ledger is accurate. If you have an accountant, having all things in place will help to make the tax season go smoother. You will also want to make sure all bank accounts and credit cards have been reconciled and that you have separated out any interest payments as well. This would also be the time to write off customers that are uncollectable as bad debt.
- Subcontractor review – Have you hired anyone to help with your business or provide any services to your business? If you have paid anyone more than $600 during the calender year, you will be required to send a Form 1099 by the end of January. Make sure that you have the subcontractor’s address as well as their social security number (if an individual) or the federal tax ID number. A good rule of thumb, is to gather this information prior to hiring the subcontractor so that no problems arise when it comes time to obtain this information.
- Review all personal expenses – Depending on how your business entity is set up (sole proprietor, partnership etc), you may have business expenses mingled with your personal expenses. Take the time now to find all the receipts, canceled checks or invoices that qualify for business related expense status.
- Schedule a tax planning session – It is always a wise idea to sit down with a tax professional. This is especially the case if your profits have increased over the last year. They will be able to help find additional savings and may be able to save you a great deal of money. Have all the above items in place and schedule a session at your convenience.
- Consider a cost segregation study – After reviewing all your books and reports for the current tax year, are you looking for a way to lower your income tax burden and increase your cash flow. Stupid question, of course you are. Did you know that a cost segregation study can do just that for you? Generally speaking, a cost segregation study is the process of identifying all assets that can qualify for accelerated depreciation. These include tangible personal property as well as land improvements. At Segregation Holding, we pride ourselves on helping our clients save more of their money and we even offer a guarantee. So, why not contact us today
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