A Year-End Checklist for Your Small Business

When you're a company owner or comptroller, the fourth quarter takes on additional importance with regards to small business tax planning activities.

As another year ends, it's good to take time to assess the things you've done over the previous 12 months, while also preparing for the future. No matter if this is your first year handling your organization's filing or you're a seasoned veteran, early preparation can streamline the process and save money for your company.

Gather Your Documents

Before you start working on your year-end tax preparation, gather the appropriate information:

• Balance sheet

• Income statement

• Payroll information

• Bank and credit card statements

• Asset purchase documents

• Depreciation schedules

• Partnership agreements

• Last year's tax return

Learn Your Deadlines

For the average U.S. citizen, April 15 is the day when tax returns are due, but things are different for small businesses. The government has a set of deadlines that differ based on the structure of your organization. If you're unsure about your company's legal obligations, the IRS website has a complete list broken down by business type.

Make Bonus Decisions

Does your company have a structure where top performers get rewards in the form of a year-end bonus? Decide how much to reward your best employees, but don't forget to withhold the appropriate taxes.

Evaluate Your Current Tax Strategies

The end of the year is a good time to take a look at the way your company operates. Since laws change every year, you can't keep the same strategies and expect to maximize your efficiency.

Reconcile Accounts

Did your company use any contractors or vendors during the year? If you have any outstanding balances, the fourth quarter is your time to reconcile those debts. Making those payments ensures they count towards your expenses for the current year.

Estimate Your Quarterly Tax Payment

If your business submits estimated taxes quarterly, the end of the year is when you should start making those calculations. While your payment won't be due until January 15, you don't want to put this off until the last minute.

Account for Personal Expenses

It's not uncommon for a small business owner to accidentally make a personal purchase with a company card. Be sure to account for those expenses when preparing your taxes.

Meet With Your CPA

Not only can your accountant take a look at your information and help you estimate a quarterly payment, but you can also use a year-end meeting to devise a strategy that maximizes your deductions for the coming year.

At Revo Taxpayer Advocacy, our team has more than 200 years of combined experience working with business owners, and we're ready to help your company too. To schedule an appointment for a consultation, contact us online or call our office today at 817-581-3223.