As we are rapidly moving into the 4th and final fiscal quarter of 2012 you may already have those "pangs" of the dreaded taxes starting to creep up on you. Like many of us business owners we tend to put such things on the back burner and then year end gets here and we suddenly panic wondering if all of our financial affairs are in order.
Here are a few things you need to be cautious and aware of as we are wrapping up this year, give yourself a little audit to make sure you have everything you should and be on track for a stress free year end.
Do you have a W4, I9, Copy of Drivers License and Social Security card on file for everyone on payroll, past and present? Do you have current addresses for everyone on payroll so there is no delay in sending them W2 at year end?
For your vendors do you have a W9 on file for everyone that will receive a 1099 from you this year, is all their information current and up to date.
Are all your bank accounts reconciled and up to date? Taking time right now to bring them up to date will save you time and money at year end.
Start Up Costs / Owners Equity
Do you have an accurate account of what you have spent personally on the business this year? This is something a small business owner often over looks, you spend your time juggling everything and forget to accurately record where you spent your personal money.
Take a look and make sure that you have been paid what is due to you and determine now if you are going to pursue bad debt or just going to write off at year end. Try to collect it now.
Profit & Loss
If your profit & loss is looking good this year – now is the time to start purchasing that office equipment, extra supplies, etc that you will need so you can use the tax deduction this year
Is your balance sheet up to date and "balanced"? This is basically your credit report for your business and your Accountant will need a current accurate and up to date copy to process your taxes.
And remember to breathe! Year end can be cumbersome but if you start preparing now you will avoid added stress when you go to your Accountant and you are confident you have all your bookkeeping in order because you prepared in advance.
Lauree Adams, Owner
Adams Business Solutions, Inc
A full charge bookkeeping service