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Ideas For 2015 Year-End Preparedness

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No more taxes - or Taxed Enough Already

Tax Planning Can Be Fun!

I realize it is not even November but year-end planning is a pain and can be more effective (and easier to stomach) if the extra year-end stuff is done over a longer period of time than at the last-minute when you don’t have the time and are prone to rush and make mistakes. I will keep the list to a small number of items because if you achieve these it will be better than not getting anything done at all.

  • Update your vendor master files with correct addresses and most importantly tax ID numbers for vendors who will be receiving a 1099 in January. Begin asking for the IRS W-9 forms (click here for a copy) from your vendors now and any future ones at the time of first doing business with you when they are most willing to do so since they want your business.
  • Any items that have been left to a “suspense” or “ask my accountant” account on your books need to be taken care of and moved to the correct expense account.
  • Adjust your loan balances to reflect principal and interest not just the entire payment going against the loan balance. Your year-end accountant can do this but it will cost you at the going rate. If you don’t have an amortization schedule from your lending institution there are many on-line programs that can run one for you that you can print and save for the life of the loan. All you need is the payment amount, interest rate, number of payments, start date of the loan and original balance.
  • Make sure your payroll tax withholding accounts are correct. At the least you can make sure you have the payroll records ready so the tax preparer can do this task for you.
  • Make sure you have reconciled your bank account for every month for the entire year. Along with this; take time to organize the bank statements, loan statements, record of business estimated tax payments made, if applicable, and other similar documents so it saves you time and money when the tax pro begins his or her work.
  • Gather any copies of asset purchases that were made and have them ready for the tax preparer (see above). Also, make sure that the new piece of equipment is in the machinery and equipment account as an asset not buried in office supplies expense.
  • Schedule an appointment to go over tax planning for early December if you are having a better than or worse than expected year. You might be able to reduce your final estimate tax payment or have time to prepare to increase it to save penalties if things are going well. If you do the items suggested above they will be very pleased and it will save you money on the tax preparation bill.

Have a great week getting organized.

 

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Written by pacelinebiz

October 19, 2015 at 8:01 am

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