Small Business End-Of-Year Preparation

The process of tax can be a bit intimidating for small businesses. With a few simple steps can help prevent problems with their tax return.

We offer a number of standard checklists below and we will help you in your final preparation.

Keep receipts

Even small purchases should be screened with the income. Although the government does not require you to keep receipts for expenses under $ 75.00, you need to know the circumstances of the cost. They want to know where the cost comes from and why you need it for business reasons. It is much easier to keep a receipt as this information or keep to remember what else. Get a recipe file and put it in your years.

Every business expenses, the ordinary and necessary taxes can be deducted from your company.

General preparation of the end of the year

When at the end of the year, there are several things you can do to reduce your tax bill.

• Reviewing your cash situation and decide whether you can afford to shop.

• If you are in a good cash position, it can be to your advantage to a few things you need to buy next year. You can use the stock of inventories, to pay all the bills you have or buy new equipment

Remember that costs more, you can generate the tax exemption that will be.

List of the accounting year end

Sometimes it helps to follow a checklist to the tasks at year end. Here are some things for yourself when the year-end financial statements.

• The total balance of my book with the bank reconciliation statement?

• There are borrowers who are useless and should be annulled?

• The balance between stocks company said that correct?

• Are there inventory items that cost more than they are worth and should be brought to market value?

• Is there a prepaid item to be adjusted so that the pre-paid insurance?

• Are all assets were reviewed for accuracy?

• Have you included all our debts?

• There are other debts that were not included in the books?

The season final stage is to check your sales, expenses and invoices. Comparison with previous years to see whether increase or decrease is reasonable. If significant changes, you can look at the ledger for this account to ensure that the data are legitimate.

Financial Checklist

• Has your life changed? Marriage, a baby, a move or a new job? You may need to change your budget for consideration.

• Pension Fund. It's a good idea to contribute as much as possible for the tax and pension

• Taxes. Only the most recent changes for you?

• Assess your debt. What do you need? Try to consolidate your bills. The first to pay are those who have a keen interest.

• Make sure your will. Today is the day? It reflects your true desires?

• Consider insurance. How is your insurance for a home or rent, for life and disability?

• What about children? Talk of creating an education savings account or use a 529 college savings plan.

Fran McCully their management solutions specializing in accounting / database, accounting and business plan development and human resources. Fran partners with small businesses, corporations, Mirco, solo entrepreneurs and individuals. To receive your free report, "Know Your Cash Flow", and find additional resources by Fran McCully, strategist and a financial report, please visit http://www.YourAdministrativeSolutions.com.

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