Year-End Business Planning Checklist

Prepare Your Key Financial Documents:

–Income Statement – Shows the Yearly Revenue, Expenses & Profit. Confirm the accuracy of each line item of this report to ensure that you’re not overstating income and eliminate all “red flags” to avoid a possible tax audit.

–Balance Sheet – Shows all Assets, Liabilities & Equity – comparing what the business owns to what the business owes.  Year end adjusting journal entries may be needed to ensure continual updated accurate financial data.

Compare these statements to previous years to give you a better idea of the financial health of your business and to see how your company is progressing.

Prepare to Complete Year-End Tax Documents

-Ensure that you have attained completed W-9’s from all subcontractors so that you can issue the mandatory 1099-NECs to each of these subcontractors by the required 1/31/22 deadline.

-Ensure payroll accuracy to complete and issue the mandatory W-2’s to all employees by the required 1/31/22 deadline.

-Confirm that all bi-weekly, monthly & quarterly payroll tax filings are accurate in preparation to complete all mandatory federal, state & local payroll tax withholding annual reconciliations.

Finalize Year-End Tax Planning Strategies

-Maximize deductions and ensure that you are keeping accurate records and following all legal guidelines.

-Possibly defer income to lessen your tax liability.

-Possibly claim the 100% first year bonus depreciation for qualified new & used assets that were placed into business use in 2021 and make all such additional purchases by year end.

-Establish, or contribute to, a tax favored retirement plan to significantly reduce taxable income.

Assess Your 2021 Goals & Set Your 2022 Goals

Don’t Wait Until It’s Too Late!