Tax Preparation

It’ts that time of year again when most small business accounting systems are closing their books. If you didn't invest in an accountant or bookkeeper services this past year, you might have some clean-up and decision making to do on your own. Catch-up bookkeeping (sometimes misspelled book keeping or bookeeping) isn’tt easy but there are some points you might want to remember.

Year-end financial statements and tax preparation are the most important reports of year, so more time and effort is needed to make sure they correctly reflect accurate information.

 

  • Year-End Accounting Checklist
  • Balance your general ledger to your bank statement
  • Write off worthless accounts receivables
  • Verify that your business inventory is correctly stated (if applicable)
  • Review your list of assets
  • Be sure that all payables are recorded
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    Four Year-end Business Tax Tips

    1. Income Deferral: If possible, defer payment until early January. Payments received in January (rather than December) will not be subject to taxation until April of the following year.
    2. Increase Expenses: Make major purchases in the previous year. Stock up on office supplies, office equipment, and pre-pay bills and subscriptions if possible.
    3. Write-off Inventory: You may wish to check your stock for damages or obsolete items in case there is a drop in market value.
    4. Retirement Planning: Year-end retirement payments can reduce your income resulting in less taxes.

    Best Tip For a Success Year-end

    Consult with a reliable accountant or bookkeeper (sometimes misspelled book keeper or bookeeper) early in the year. There is no such thing as cutting corners, because there are many credits, deductions and other items that need to be considered. A seasoned tax professional will keep up on the changes and know the ins and outs that can make an incredible difference in your year-end financial statements and tax-preparation.

    (Information included in this article may not apply to your particular scenario and should not be deemed accurate. Only a qualified professional can give you proper advice for your business.)

    Do you need some help getting caught-up? Have questions about where to find help? AccountantsGuaranteed.Com is a free service that can put you on the road to success. The free research service can put you in touch with an accountant or bookkeeper that can help you with your small business accounting needs. Contact www.AccountantsGuaranteed.Com for a free consultation today!