End of the year check-in
How is it possible that it is almost November?!? I feel like we just were in the chaos of last tax season. As the end of 2022 looms in front of us, we want to make sure that you are ready for the end of the year and the upcoming tax season. This month we are going to focus on practical considerations for your business and your finances so you're set up in the best way possible for your taxes and for starting a new year and a new season.
Here's just a quick overview of some of these topics that will go into more depth this month:
Should you file as an s-corp in 2022? If you are an LLC this year when filing your taxes as an individual for the last 2 years it's a good time of year to look at your profit and loss and see if your net income is high enough to warrant changing your filing status with the IRS. If you are thinking about making this change we need that information by the end of November in order to get everything in line so you're ready to do that before the end of the year.
If you are a retail or wholesale business that has inventory, it's a good time to clear out old inventory that you don't plan to carry in the new year. Also, as you are planning for next year, avoid purchasing excess inventory this year that you won't be able to sell until later in 2023 in order to set yourself up in the best spot tax wise.
If you have employees, you may be looking at end of the year bonuses or other incentives. A quick reminder: all bonuses need to run through the payroll system so they make it onto your employees W-2. Other end of the year incentives like gifts or parties or other client appreciation do not need to be captured in payroll.
You may also be looking at benefits that you are currently offering or that you want to offer in the new year. If you are looking for advice on your options for health insurance, retirement plans, or creative benefits that can help with retention and hiring new employees, get in touch! We have resources that can help you and we're also happy to talk about what we're seeing in other small businesses.
Get your books all ready to go! Most of you are excellent at helping us keep your books up to date, communicating with us about your ask reports, or letting us know when you have new loans or accounts that should be on the books. But some of you are pretty awful at this. Keeping everything up-to-date each month allows you to have a clear and accurate picture of your business finances throughout the year. It also avoids tax season stress. When finalizing clients for tax prep in January, Missoula Bookkeeper will be giving priority to clients who have kept up on things throughout the year. You won't be able to file your taxes until your books are finalized, so it's in your best interest to get us information as soon as possible. Those of you that have long Ask lists or other missing information will be getting a personal reminder with a deadline so we can get your tax prep finalized in a timely fashion.
Needing a CPA for this year? We’ll be sharing a list of our favorites for small business owners. When looking for a CPA, it's important to find someone who is comfortable acting as an advisor and not just filing your taxes every year. Finding someone who has expertise in your industry or business type is also important.
Planning big things for next year? Talk to us and your CPA now so that you're planning well for the new year. This could be big changes in your personal life: marriage, divorce, babies, empty nesting. Or it may be big changes in your business: retirement, hiring employees, expanding your business, buying a building. Missoula Bookkeeper can help you look at your business finances and talk through how these changes can be managed financially and planned for.
In the midst of finishing out the year and celebrating the holidays make sure that you take some time to decompress and relax. Be present with your family and start the new year rejuvenated and ready to grow your business!
It has been an amazing year and we are so grateful for all of our clients and followers. We are excited for another year of helping you with your businesses and watching you flourish. Thank you for letting us be a part of your businesses and organizations!
FINANCIAL TOOLS WE LOVE (and really use!)
Angela’s Pick: FETCH REWARDS APP
Fetch Rewards is a shopping app that gives you points for everything you buy. Just open the app and snap a picture of the receipt and get points. Fetch has partnerships with certain brands and you get extra bonus points when you buy those brands. Connect your email and Fetch will give you points for your online purchases as well! Redeem your points for gift cards with hundreds of retailers, or donate to charity. One point = one dollar, so points add up fast. Just this week I redeemed my points for $50 on Amazon! Available on Google Play and App Store
“Year’s end is neither an end nor a beginning, but a going on, with all the wisdom that experience can instill in us. “
