Tax tips - A Dozen Year-end Small Business Tips
As the year winds down here are some ideas to consider to help manage your small business.
- Identify all vendors that require a 1099-MISC and obtain their tax identification numbers (TIN).
Determine your current year/next year strategy. Which year benefits from higher taxable income? Where possible, accelerate or delay your sales and expenses. If unsure, target the current taxable year for reducing your net income.
Consider use of section 179 expensing versus traditional depreciation. If using Section 179 double-check that your qualified assets are placed in service prior to year end.
Review your business meal documentation. Make sure you have the necessary receipts and note when, who and the business purpose on each receipt.
Consider any last minute deductible charitable giving including long-term capital gain stocks.
Review your telephone records for qualified business use. While expense for a single landline out of a home office is tough to deduct, cell phone use for business purposes can be documented and deducted.
Set up separate business accounts if you have not already done so. This includes savings accounts, checking accounts and credit cards. Co-mingling business and personal expenses in one account is not recommended.
Create expense reports. Having expense reports for business travel and for your business credit card will help defend your expenses in case of audit.
Organize your records to make tax return filing easier.
Double-check your inventory prior to year end. Confirm counts and write off unsalable product.
Review your receivables. Focus on collection activities and review your uncollectable accounts for possible write-offs.
Make estimated tax payments.
Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
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