Summer is not the time when most business owners are thinking about taxes. We tend to be more focused on vacations, barbecues, beach trips, employee outings, and all the amazing things that we love about summer. However, if you are willing to take a little time, there are a few things you can do now to set yourself and your business up for an easier year-end and tax season.
1. Review Your VENDORS:
Take some time to review your vendors by answering these questions:
- Have you started working with any new contractors this year?
- Do you have their insurance information on file?
- Did they remit a Form W9 so you have the information needed to send a 1099-MISC at the end of the year?
- Could you pay them via a credit card or debit card instead of a check so you don’t have to send a 1099-MISC?
- Does the money you’re paying them still make sense?
2. Review your INCOME:
Take a look at what you’ve earned over the past six or seven months:
- Are you on track with your goals?
- Have you had some setbacks, making it unlikely you’ll reach these goals?
- Have you exceeded your estimated income for this year?
Either way, now is a good time to talk to your accountant and bookkeeper to make adjustments to the estimated tax payment for the last half of the year.
If you found you are not having as good of a year as hoped, you may want to reduce your payments to allow for a little extra cash in the coffers, rather than “lending” it to the IRS interest-free until you submit for a refund. Your tax accountant and/or bookkeeper can help you analyze these numbers to see if these adjustments make sense.
If you are having a better year than expected, first CONGRATULATIONS! That is excellent. And second, you will want to increase your estimated tax payments to avoid an unpleasant IRS bill in April. In this case, new equipment, personnel or capital improvements may also make tax sense.
3. Review your BOOKKEEPING PROCESSES:
While reviewing your bookkeeping processes, answer these questions:
- Are your books up-to-date?
- Do you feel confident in the numbers you’re getting?
If you answered “no” to either of these questions, now is the perfect time to make changes to the process.
4. Ensure your BOOKS are accurate and up-to-date:
To succeed in business, you need access to accurate, timely financial information. Reviewing your bookkeeping processes is helpful in identifying any road blocks to keeping your books accurate and up-to-date. Here are a few common road blocks:
- Irregular posting and reconciliation of transactions. Has your business grown to a point where you can no longer fit this process into your day? Consider hiring an outsourced bookkeeper.
- Your bookkeeper isn’t proficient in your software. When it comes to working more efficiently and accurately, a little QuickBooks training can make a huge difference! Contact Fournier Accounting and Bookkeeping Services regarding its QuickBooks training and consultation services.
Make Tax Time Easier
Tax time is always going to be stressful and there is no getting around that. But by investing a little time this summer, you can take some important steps to at least reduce unnecessary stress at tax time.
Accounting and Bookkeeping Services in NH
Getting caught up, finding and fixing any accounting mistakes, and setting up processes to stay up-to-date will help you make effective decisions about your business and where it is going for the next half of the year. Fournier Accounting and Business Services can help you improve your systems so that you succeed in your business. Contact us today for a free consultation.