In my last post, I mentioned the importance of being organized for the upcoming tax season. Today, I will point out a few items for business you may want to start putting together in anticipation for tax preparation.
- Clean up those accounting books (or create them). If you don’t have books, now would be a great time to create some based off of your income and expenditures. Reasons why you’d want to try to do this now will be in the following items.
- What expenses have you incurred this year and will it be beneficial to get those items you know you need this year to offset some of the income you will report for 2017 for the 2016 tax year?
- The one thing that is normally not paid much attention to in small business is inventory. An inventory count at the end of the year is crucial before starting a new year. This can also be a good time to determine if you are low on any items as well. This may take some time but at least you can get a head start. Sure you may sell some things before the end of the year but if you have an electronic method of tracking this, it will not be as redundant as you may think.
- It is important to have your books in order to prepare for 1099 and W-2 filings, if this is something you do on your own. If you are using a payroll service, you are well ahead.
- This time of the year is also a good time to implement a budget. Reviewing your budget for the current year can give you a good idea of what you need to put in place for the next year. The important thing is to create your budget well before the start of the new year. Taking a hard look at your income and expenses will indicate if you need to change anything for the upcoming year.