Are you wondering what can be done in your business to get ready for the tax year end? Here are some ideas to save you some hassle:
Contact Your Accountant
Schedule a meeting to talk about your finances in the past year and what your plans are for the future. A competent professional accountant is an invaluable asset to your company. These individuals employ an inquiring mind to their work founded on the basis of their knowledge of the company’s financials. Their training in accounting enables them to adopt a pragmatic and objective approach to solving issues. This is a valuable asset to management, particularly in small and medium enterprises where the professional accountants are often the only qualified members of a staff to handle finances. Accountancy professionals can assist with corporate strategy, provide advice, reduce costs, improve your top line, and mitigate risks.
Stock up on office supplies and equipment. Timing is crucial when it comes to making small business equipment purchases. The equipment expensing election applies whether equipment was purchased during the first or the last month of a tax year. This means that purchasing a piece of equipment during the last month of a tax year can save money, but only if the equipment is put into use before the year ends. Delaying major equipment purchases until the last half of the tax year is a common practice among small business owners and can be a valuable tax strategy.
Make Charitable Contributions
Making contributions is always a great idea, but for tax purposes you need to ensure that you are donating to a business or organization that qualifies as a charitable organization. When making charitable contributions, try to get some sort of receipt to turn in with your return as this helps to alleviate concerns from the IRS.
Reevaluate Your Accounting System
The first of the year is a great time to look at your accounting system to see if it is still meeting all your business needs. Common accounting systems include QuickBooks, Xero, and Peachtree. Is your business thriving and in need of a software update? There is also the possibility that you don’t need a big, expensive accounting software package. A very simple Excel worksheet might be just what you need to keep your books in order.
Help is Available
As a good rule of thumb, an accountant or accounting professional is a great person to have in your corner, especially as tax time looms in the near future. You can also contact your local Wyoming SBDC Network advisor for no-cost, confidential assistance with your finances by clicking here.
About the author: Rob has experience in commercial banking, Accounting Systems, and he speaks Spanish. As someone who loves seeing small businesses succeed, Rob enjoys the journey a small business takes from start to finish. When he is not on the road or meeting with clients, Rob enjoys spending time with his family and enjoying the outdoors, hunting, or fishing.