Everyone’s gearing up for the end of the year, and there’s so much to do. And that may feel especially true if you’re a small business owner. Whether it’s reviewing this year’s financials or planning for the next year ahead, you’ll want to put some time aside for tax prep.
If you haven’t been taking stock of things, like your expenses, throughout the year, don’t worry! There’s still plenty of time for you to prepare before it’s time to file taxes. Here are few tips for end-of-the year tax prep that’ll help ensure that you’re well-prepared come tax time.
Review your reports and paperwork
Before the year ends, make the most out of your deductions. Take a look around your office. Are there any upgrades you can make? Are there any purchases you can make to improve your office and maximize your deductions? And after every purchase, remember to keep the receipts and invoices!
But what if you haven’t been keeping track of all your business expenses throughout the year? There’s still plenty of time to do it in a timely fashion. Set some time aside to gather all your receipts and invoices, and double check for any mistakes on your paperwork.
For next year, be sure that you’re a step ahead and keep track of all your business expenses throughout the year. It’ll help ease the stress come the holiday season, and all you’ll need to do is double check your work.
Do you make quarterly estimated tax payments? If so, for many of you, your fourth-quarter payment is usually due in mid January of next year. Before the year ends, you should review your quarterly payments for the year and see how they add up against your year-end numbers so come next year, you’ll be well-prepared and a step ahead.
Plus, reviewing your quarterly payments is a great way to figure out what you may expect in your refund (if any). It’ll also give your accountant a better idea come tax time.
Donate to charity
The IRS likes to reward charitable businesses by allowing certain donations to be qualified as tax deductions against your business’s annual tax liability. However, not all charitable contributions qualify so it’s important that you know the limitations and understand the tax code. If you need help figuring out if your charitable contribution qualifies, you can speak to any of our attorneys that specialize in tax. The tax code for charitable donations can be complex, so you can leave it to the legal experts and ask a tax question here.
And be sure to check out our Legal Checklist for Charitable Donations blog post so you know the important steps and understand the rules of donating to charity.
Hire a professional
The end of the year can get crazy for anyone — especially if you own a small business. That’s why we have legal experts to help you with the legal part of your business so you can focus on your business for the new year ahead or just use that extra time to enjoy the holiday season with your family.
Do you have an end of the year tax prep routine? Share in the comments below!