3 Things You Can Do Now to Get Ready for Tax Season

Autumn. The leaves are turning, the air is getting cooler, and pumpkin lattes are in every cafe in sight. The year is starting to wind down and you might be feeling behind on your small business tax preparation. As the end of year approaches, it’s important to get caught up with all of your finances so you can properly assess your financial situation while there is still time to make purchases before the end of the tax year if that’s what’s necessary. If you haven’t been preparing as you go, this is a great time to take an hour each week to catch up. You’ll be able to tally your expense reports or review receipts and modify records. You not only want to be prepared to submit your taxes but also capitalize on deductions. Now is the time to implement strategies that will ensure your small business is in a secure place for the upcoming tax season. End-of-Year Payroll Reviewing this year’s payroll may be easier to do before the end of the year than at the start of the new year. Overlapping end-of-year payroll with the new-year payroll could result in confusion. Ensure you are gathering the correct information for W-2 forms and taxable fringe benefits. If you plan to give your employees end-of-year bonuses, do so by year-end so that they are included in your employees’ income for that year. Quarter four (Q4) is also a great time to verify all of your benefits and employee payroll information is correct. It is important to detail out your payroll to avoid penalties for late, incorrect, or incomplete submissions....