QuickBooks Can Help

As tax time approaches make sure that your accounting is up-to-date. Knowing where your business stands from a profit or loss perspective can help with year-end planning. If your business has a profit, you may want to accelerate certain expenses to get an immediate tax benefit. If you were planning to buy some additional equipment for your business, you can lower the taxable income for your business by making the purchases before the end of the year. On the other hand, if your business has a loss, you may want to delay incurring additional expenses. For instance, if you receive a salary from your business, review the amount you were paid in light of how your business is doing. You may wish to cease paying additional salary until next year.

If you paid employees during the year, you will be required to file year-end payroll reports and Forms W-2 just after the year ends. Notify employees to review their address and Social Security number on their paychecks and to verify that their check name appears exactly as it appears on their social security card. Gather information for contractors; obtain social security numbers and addresses for any independent contractors you hired during the year. You will be required to file a Form 1099-Misc in January for any contractor you paid over $600.