As the year winds down and we all start to get into the holiday season there is one thing to start thinking about as a business owner: TAXES
I know I just ruined your breakfast this morning but it is something we cannot ignore. Here are 3 quick tips to help you as you prepare for this all-important task:
1. Make sure you have updated contact information and W-9's for all vendors who you have paid $600 or more to this year. If they are a corporation then they will not need a 1099 to be issued to them but if they are a sole-proprietor or LLC then you will need to issue them a 1099. If your not sure then get a W-9 from any vendor who you have paid more than $600 to this year. It's better to be safe than sorry.
2. Start gathering all your business related receipts you used for expenses this year and capture them on an Excel spreadsheet for easy retrieval for your tax preparer. For next year think about using Expensify to manage all of your expense recordkeeping.
3. Make sure your bookkeeping is up to date and is working for you. Do you use a specific accounting software or are you only using Excel spreadsheets? If it is the later it may be time to review if that system is still working for your business.
If you need more specific information related to tax planning and how to work with the IRS should you find yourself owing them check out Josh Bauerle's site CPA On Fire to learn some cool tips and tricks.
It is the season to be jolly but you won't have much to be happy about if you have the tax monster nipping at your toes. Be proactive and check out the tips above. Do you have a good system for keeping track of your tax-related information? Or do you just hate the word taxes? Share with us in the comments below.
Keep it Sunny!