End of Year and Tax Season Prep for Business Owners
We’re staring past mid-November right in the face. That means December is around the corner—chock filled with holidays and parties—and then (drum roll, please) January. And with January comes tax season.
Now is the time to get a head start on your tax preparation. Your accountant will be your new best friend and your stress level will deflate. It’s a good time to check in with your tax preparer to discuss any end-of-year strategies that could make a significant impact on your business’ income for the year, as well as your tax liability. We have found most business owners do not sit down with their CPA until after the end of the year. Sitting down before 12/31 for that one hour over coffee or at their office can save you thousands, and in any case, save you stress knowing you’re well prepared.
If you need to be connected to a trusted CPA, please contact your trusted team member at Journey Payroll. Journey will connect you to a trusted CPA that knows your business and can point you in the right direction.
Run Your Reports
Ask your bookkeeper or accountant to run relevant reports. Then schedule a time to go over this information together and make sure that your books are accurate and current. Discuss next year’s goals and how 2017 looked. If you haven’t been doing so all year, now is the time to develop your tax strategy.
Check with your accountant to see if it makes sense to shift income scheduled to land in December to land in January instead. Depending on your 2017 income levels, this strategy has the potential to cut your tax bill.
Maximize your deductions with expenditures. Stock up on office supplies. Get current with vendors. Upgrade equipment. Make a list of items you can purchase to take full advantage of your deductions.
Check Your Inventory
Depending on your accounting methods, you may be able to claim additional deductions if the market value of your inventory has dropped. Your accountant can advise you if this is a sound strategy for your business.
Start or Contribute to a Retirement Plan
Max out retirement plan contributions before December 31st to reduce your 2017 personal income. If you don’t have a retirement plan in place, work with your financial advisor to determine which plan is the best fit for your company.
Make Charitable Contributions
’Tis the season for generosity. Support charities that pluck at your heartstrings. You’re not only making a difference in your community, you’re making a difference in your business’ finances. The donation doesn’t have to be monetary, either. Donating items such as toys, clothing, or other goods allows you to claim a deduction for fair market value of these items. Make sure you document donations properly with receipts.
Use the Journey Employer Solutions 2017 Year-End Checklist
We’ve compiled a checklist with important dates for Journey Employer Solutions’ clients as well as a comprehensive list to help all employers update and gather all the important data to make your tax season preparation as painless as possible. You can download that here.
Or give us a call at one of our two offices to schedule an appointment to discuss your needs.
Our Colorado office covers the midwest and eastern regions. That number is 970-568-8613.
Western region business owners can call the Arizona office at 480-699-2729.