END-OF-YEAR TAX REMINDERS

For small businesses

As the year winds down, small businesses must take the time to prepare for tax season. Here are some key reminders and tips to help you navigate the process:

Organize and Review Financial Records:

• Gather all income and expense documents: Collect invoices, receipts, bank statements, payroll records, and any other relevant financial documents.
• Reconcile bank accounts: Ensure your bank statements match your internal records.
• Review expenses for accuracy: Double-check deductions and ensure they are legitimate and properly categorized.
• Update depreciation schedules: Track and update depreciation for assets purchased during the year.
• Consider inventory valuation: If applicable, determine the accurate value of your inventory at year-end.

Maximize Tax Savings:

• Consider prepaying expenses: Prepaying some business expenses for the next year may lower your current year’s tax burden.
• Contribute to retirement plans: Consider contributing to SEP IRAs or solo 401(k)s to reduce taxable income.
• Review tax deductions and credits: Explore available tax breaks for small businesses, such as home office deductions, health insurance premiums, and retirement contributions.

Important Deadlines:

• File estimated tax payments: Ensure you’ve made all required estimated tax payments for the year, to avoid penalties.
• December 31st: Deadline for most businesses to close their books for the year.
• January 31st: Deadline to postmark W-2 and 1099 forms to employees and contractors.
• March 15th (2024): Deadline to file federal corporate tax returns (1120, 1120S, 1065, etc.) (unless an extension is filed).
• April 15th (2024): Deadline to file federal income tax returns (1040) (unless an extension is filed).
• State and local filing deadlines: Deadlines for filing state and local tax returns may vary.

Additional Resources:

• IRS Publication 334: Tax Guide for Small Business

Consider Seeking Professional Help:

If you have complex tax situations or need assistance, consider contacting us. We can guide you through the process and ensure you are maximizing your deductions and credits.

Remember:

• Start early: Don’t wait until the last minute to prepare your taxes.
• Stay organized: Keep your financial records in order throughout the year.
• Be proactive: Take advantage of tax planning opportunities.
• Don’t hesitate to ask for help: We are here to provide valuable assistance.

By following these reminders and taking advantage of available resources, small businesses can ensure a smooth and efficient tax season.

If you are a small business that had payroll in 2020 or 2021, you may qualify for the ERC (Employee Retention Credit). Contact us for more information.