By Analytix Editorial Team
Financial year-end activities almost always include streamlining business accounts for closing the books and tax preparation.
Consider reviewing the following key activities before your small business’s financial year-end.
Check Tax Obligations
For every small business, there are several options to help reduce taxes owed. Review your deductions and expenses to ensure you have considered all tax implications. Simple deductions, such as infrastructure purchases and expenses made towards office operations are important to consider during tax preparation. Even items such as eco-friendly vehicles for business purposes, often qualify for tax credits.
Review Business Profits & Loss
Periodically review your accounts to ensure all financial information is in order. Accounting automation and cloud accounting can help streamline financial operations and data, but business owners need to stay on top of the review process, ensure bank accounts are reconciled, and receipts and records are maintained.
Asses Vendor Payments
Ensure your business has issued all required W-9 forms to vendors. The IRS tracks expenses through the W-9 process. In addition, if you have paid contractors over a certain limit, you will need to issue 1099 forms to record amount paid.
Review Tax Withholding
Ensure you tax withholding is in order by reviewing your current payroll obligations and any bonuses paid. Bonuses do qualify for income tax withholding, but be sure to study your liabilities and withholding when making payments.
Before closing your books for the year, review current employees and those who have left the organization to ensure that you have met all payroll-related tax obligations.
Hire Professionals or Choose an Outsourcing Vendor
A professional advisor can help your small business address items on a year-end checklist, including:
Analytix Solutions offers customized solutions for businesses ranging from traditional accounting and bookkeeping solutions to sophisticated accounting integration and automation. For more information on how we can assist your business, call us at 781-503-9004 or email us at [email protected].