8 Tips for Year End Planning

Are you ready?


With fall in the air, the end of the year is just around the corner. Here are eight tips for planning for the end of the year for your business:

1. Get your financials in order: Even the best accountants can make mistakes when rushing to meet deadlines and having to sort through a shoe box full of receipts and documents. Whether you've consistently maintained accurate financial records or you have a drawer full of receipts to sift through, getting your books in order is the first and most important step. We can help you with this.

2. Consult with your CPA: Check to see if there are some tax saving steps you can take before year end.

3. Meet tax deadlines: Make sure you have everything prepared on time means starting now. Deadlines differ depending on when your tax year ends and your business entity and meeting deadlines can minimize penalties and interest. Here are a few:

• W-2 and 1099's: 01/31/11 for recipient copy, 02/28/11 for copy to SSA/IRS
• Form 940 (federal unemployment): 02/01/11
• Corporate tax return (calendar fiscal year): 03/15/11
• Sole proprietor/Single member LLC (schedule c): 04/15/11

4. Don't forget your retirement. When you contribute to an IRA or other retirement plan you can reduce the amount of income taxed by the IRS.

5. Keep everything! Keep all receipts, old check books, bills and invoices, mileage logs, canceled checks/proof of payments, and any document that supports deductions and credit claims on your tax returns.

6. Analyze this year's financial statements.Look at trends on your Profit & Loss Statement. What can you do to reduce costs or increase revenues for the next year? Look at your balance sheet. How do your current assets (liquid assets) compare to your current liabilities (what you owe)?

7. Evaluate this year's goals.Now that you see where your business stands, it's time to take a look at how it got there. Pull out your business plan or action plan and review the previous goals you'd set for the business. Did you meet your goals? Why or why not? What could be done better?

8. Plan for next year. Avoid disorganization and future stresses by planning for next year NOW. Use what you've learned in preparing your finances and evaluating the current year to set next year's goals, prepare an action plan, and start implementing that plan. We've got a Strategic Action Plan form we can share with you to help with this.