The end of the year is a big time for small businesses. We’ve just come out of budgeting season and now we’re looking into what else we need to do for the end of the year. As a small business owner, you should be starting to turn your attention to tax preparation, deadlines, and other tax considerations before the turn of the year. As always, we’re here to help so here are some things to keep top of mind in the coming days and months.
Watch out for Spending Temptations
Do not succumb to all the temptations at the end of the year to “save on taxes” and buy something simply because it is a write off. You should only be spending money on things that you would be buying anyway regardless of the timeline. If you’re in the fortunate position of having a high profit for the year, DO NOT go and buy frivolous things in an attempt to get that number down. It’s like trading a dollar for a quarter. It doesn’t make any sense and it is one of the more common problems we see.
Be aware of tax deadlines
December 31– Most of us are on a calendar fiscal year so that means that December 31st is going to be a very important time. This is a cutoff time and once that date has past, the year is over, and there is no going back. If you are going to try to be strategic in making expenses or purchases or even receive money, you need to be keenly aware of this final day of the year.
January 15- Another date to have on your calendar is the final opportunity to make an estimated tax payment for the 4th quarter of the year
January 31– The next thing to pay attention to is that tax forms for your employees and your contractors are going to be due. You need to report all your W-2 information and give those to your employees as well as any 1099-NEC figures for any contractors hired in the previous year.
February 28– Payments not subject to self-employment tax are filed a bit later. 1099- MISCs are going to be due at the end of February.
Know who is filing this stuff for you
Is your outside payroll provider responsible for these filings? Is your CPA or bookkeeper handling your payroll? You need to ask yourself who is filing the W-2s and who is filing those 1099s. Make sure you are clear who’s obligation it is to get these important tasks completed.
Inner Circle Bookkeeping can help
The end of the year can be a stressful time in both our personal and professional lives. There is a lot to stay on top of and to consider in the coming months. If you need someone in your corner to take anything off your plate or to bounce an idea off, we’d love to hear from you!
Want to learn more? Click here to read 4 Reasons You Need a Bookkeeper
