As we reach the end of the year, there are a few things you can do to make tax season a little bit easier.
1. Don't wait until December 31st to get up to date on your bookkeeping for the year. With the holiday season quickly approaching, it will be harder to find the dedicated time you need to get your accounting up to date for your business. Also, at beginning of the new year, support professionals like bookkeepers and CPAs get busy very quickly and it will be hard to find help, if you need it.
2. Find your CPA now. Good CPAs for small business owners book up quickly and get very busy at the beginning of the year. Finding your CPA now both reserves your spot for tax season and also gives you more time to discuss your situation allowing you to make any necessary adjustments before the end of the year
3. Review the list of people you may have to send 1099s. Make sure you have their W-9s on file and if you do, confirm you have the correct mailing address. If you send out 1099s to the incorrect address and have to have them re-issued later, it will cost you a lot more money and time.
4. If you have accounts receivable, get aggressive now about collecting outstanding payments. It gets more difficult to collect money as you approach the end of the year, because many companies are trying to hold onto cash.
5. If your business is growing and your income has increased significantly, talk to your CPA now, to see if you need to adjust your estimated tax payments to the IRS. You can avoid a large payment during tax season by handling this now.
Speaking of CPAs, don't forget that we have a partnership with Sandra E. Schultz, CPA and are currently taking on new clients for the coming tax season. If you want to ensure your small business is prepared, please reach out to me directly at tom@businessbybarnhill.com.
Written by Tom Barnhill, Owner of Business by Barnhill