As the end of the year approaches, there are certain tasks you’ll have to complete. This involves meeting your tax obligations and planning for your goals for the new year. You can make sure you meet all of your additional obligations by creating a strategy that addresses everything you’ll need to do. This guide can help you create a more comprehensive list.
Assess Your Year-End Finances
This involves collecting data from all sources to create an accurate set of documents. You’ll need to create a balance sheet that reports the assets, liabilities, and equity for your business. You’ll also need a profit and loss statement that lists all of the revenue your business earned and all of the money that was spent in its operation. The tally will help you see at a glance whether or not your organization earned a profit. Finally, you will have to prepare a cash flow statement that shows where your business’ funds have been spent. It should show revenue earned from the operation of your business, expenditures that were required, investments that include purchases for your business, and loan transactions.
Prepare Your Taxes
You’ll probably need an accountant or tax attorney to help you prepare the tax records for your business. You should turn over the previously mentioned documents in addition to any additional documents your tax professional requests. Once they have the documents, they can help you file compliant returns without having to subject you to overpaying on what you may owe.
Ask Your Employees to Review Their Tax Documents
Your employees will have to file personal income taxes as well. It’s a good idea to have each employee review their W-4 forms. This will ensure the W-2 forms that are sent out will be accurate. They should be sure to check their names and addresses in addition to checking to make sure their withholdings are correct. You can go over these details with your employees as you conduct end of year performance reviews to save time.
As with any project, failing to plan out your strategy for meeting your business’ year-end needs can result in oversights. Once you make a list of things you’ll have to do, keep it with you and add to it as you proceed. By the time you’re finished, you’ll have a written plan that you can save and use year after year.