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The end of the year is fast approaching! It’s time to wrap up those final tasks that can make a big difference in reducing stress and preparing your business for tax season. Here’s a handy checklist to help you complete important end-of-year to-dos: Record Your Vehicle’s Odometer Reading Note the odometer reading for any vehicles used for business. This is essential for calculating your business versus personal mileage usage. Ideally, you have a mileage log, but at the very least, an end-of-year reading will help determine your annual total. Count Your Inventory If your business holds inventory, you’re required to do a year-end count and record its value. This ensures accurate records for taxes and helps you start the new year on track. Collect W-9s from Vendors Check if you’ve paid any contractors or vendors over $600 throughout the year, as you’ll need to issue a 1099-NEC form for them or a 1099-MISC for rent or attorney payments. The IRS provides free forms (call 1-800-829-3676), but be sure to order early as they can take a couple of weeks to arrive. Back Up Your Data Make sure to back up all your data, especially financial records. Double-check that backups are copying correctly and consider keeping a second backup for added security. Verify Payroll Tax Rates For businesses with payroll, check if your state’s employment tax rates have changed for the upcoming year. You should have received a letter with any updated rates by early December. Send them to your payroll processing team ASAP. Copy Thermal Receipts Many receipts, like those from gas stations and office supply stores, are printed on thermal paper, which can fade over time. Make copies of these receipts, as the IRS requires readable details, not just credit card statements, in case of an audit. Schedule Corporate Minutes If applicable, make note of your corporate meeting dates for the coming year. Corporate minutes are often required annually, so it’s helpful to mark them in your calendar now. Review and Update Your Business Plan Reflect on your business goals. What are your revenue projections for 2024? Consider how they compare to 2023, and think about strategies to boost profits and streamline operations in the year ahead. Set a Closing Date in QuickBooks In QuickBooks, set a closing date and password to lock down your financial records, helping ensure accuracy and security for the year-end. Review Accounts Receivable and Payable Check your outstanding invoices and follow up with any clients who haven’t paid yet. Also, settle any bills you owe to maintain accurate records and cash flow. Assess Estimated Tax Payments Review your quarterly estimated tax payments to ensure they’re accurate. Making an extra payment by the end of the year can help avoid penalties and reduce next year’s tax burden. Evaluate Your Tax Deductions Look for any additional expenses you can deduct this year, like office supplies or software subscriptions. You may also want to contribute to retirement plans to maximize deductions. Analyze Business Expenses Go through your expenses to identify any unnecessary costs you could reduce or cut in the coming year. This can improve profitability and efficiency. Renew Business Licenses and Permits Check if any licenses or permits are expiring soon and renew them in advance. This helps avoid penalties and interruptions in business operations. Review and Update Employee Benefits Review your employee benefit plans, such as health insurance and retirement contributions, to ensure they’re competitive and compliant with regulations. Evaluate Your Financial Goals and Set New Ones Look at your business’s financial performance and set realistic goals for the next year. Whether it’s increasing revenue, reducing costs, or expanding services, setting measurable goals can help guide your strategy. Completing these tasks will help your business start the new year in a stronger position and make tax season that much smoother.
For businesses where tips and gratuities are common—such as salons, spas, or other service industries—knowing how to record these amounts correctly is essential. Tips need to be accurately recorded to ensure employees are paid properly and taxes are managed. Here’s a simple guide on handling tips in QuickBooks Online (QBO), with options to make your process as smooth as possible.
Investing in your grandchild's future can be one of the most rewarding ways to secure their financial well-being. Whether you're contributing to a 529 College Savings Plan or setting up a UGMA/UTMA account, understanding the tax implications is key to maximizing your investment. Learn about gift tax exclusions, how to avoid the Kiddie Tax, and tips for using tax-advantaged accounts. This guide will help you make smart decisions for long-term growth while minimizing tax burdens.
Discover how to invest wisely in your grandchildren's future! Read our complete guide now.
Usually some part of the statement is true; however, there is always more to the story or it may not apply to that person’s specific situation. Who has heard the statement, “You can’t deduct a loss from business if it is more than 3 out of 5 years.”? Well, this is not the entire truth. A person that conducts an activity for profit is allowed to deduct the expenses that are ordinary and necessary in that industry. If the expenses exceed the income, the amount can offset other income such as wages, interest or dividends. However, if your activity is a hobby, you cannot reduce your other income by the losses. When your losses exceed the 3 year rule, the burden of proof now shifts to the taxpayer to prove the activity is a for-profit business. Here are some factors to consider: The manner that you carry on the activity The expertise of the taxpayer in this industry The time and effort spent in the activity The taxpayers history and success in this industry The elements of personal pleasure or recreation Here are some ways to ensure your for-profit business is not considered as a hobby : Keep thorough and business like books 2. Use a separate business bank and credit card account(s) Log any personal use on assets, such as a camera Research trends in similar businesses Obtain insurance, registrations, certifications, licenses needed for that type of industry Maintain a second phone listing for business Document evaluations of your operation to attempt to improve the business’s profitability Develop a written business plan and update it annually Keep a detailed calendar of your business activities I had a client that had a business of being a personal chef. This was not his primary way of earning income. He had a W-2 job with a local city. He did earn about $200-300 in income; however, his expenses were much more than that. Come to find out, he was hosting dinner parties at his home and wanting to write off the food, subscription to cooking magazines and seeds for his home garden. If you are in doubt, just imagine yourself in front of an auditor explaining your specific situation. If it “feels” like the story above, it may not fly with the auditor, but that does not mean it is not a true business. What you need to do is plan and strategize. What can you do today to prove that you are a for-profit business? Know the rules and then step out in confidence. And, don’t get tax advice from a friend because it might not be the whole truth! Consult your tax preparer to confirm your specific situation qualifies!
Probably one of the most frequently asked questions I receive revolves around auto use for business: What can I deduct?; Lease or buy?; What miles count?, etc. Here are some general rules you need to know to make sure you get every deduction allowed on your auto use!
A few months ago I took my son for a checkup at the doctor's office. Even though I had written confirmation of our appointment time, the office was crowded with several other patients who also had appointments at the same time. The office staff admitted they made a scheduling mistake, told us we would not be seen that day and still insisted we pay our deductible up front. Then they sent us home, without so much as an apology. When I got home, I told my husband that the doctor’s office was terrible to deal with and I wanted to search for a new doctor. This frustrating experience made me think that in this age of social media and online reviews, all business industries really need to look at how their customers experience their services . It's a hard thing to do; even industries that are known for providing good customer service, such as retail and hospitality, don't always get it right. How do your customers feel when they use your products or services? During a recent family trip, I stayed in two different hotels where the customer experience was dramatically different. The first hotel provided a continental breakfast each morning, which included cold cereal, muffins, hard-boiled eggs, waffles and coffee. The first morning, I went down to the dining room to have breakfast to find a half gallon jug of milk in the refrigerator with only about an inch of milk left. No staff was present to replenish the food. The eggs were peeled and under a plastic dome, and the waffle batter was in small cups to pour onto the grill. Since there was no one around, the food just did not seem appetizing to eat; therefore, we went to the local diner to have breakfast. The next couple days, I faced the exact same issue with this hotel's unappealing continental breakfast! Where was the hotel's concern for their customers' experience here? The next hotel too had a continental breakfast, but what a difference! There were 15 people in the room eating and two staff members constantly cleaning tables and restocking the food. There was PLENTY of milk for my cereal! After breakfast, we walked across the parking lot to our room, and I noticed three buckets labeled “clean towels," "dirty towels" and "water.” The hotel had put them out so that the travelers could wash their windshields with clean towels instead of paper towels. This small gesture sure sunk in with me. So I searched my mind…Am I providing good customer service? How hard do my clients have to work to get the value out of the money they spend with me? Where in my business do I only provide a half gallon of milk to my clients and have them think, “Really, that’s all I get?” How can I make sure they experience the extras of having clean towels available to wash their windshield after many miles of traveling? Providing good customer service has to be intentional. Think about how your customers or clients feel when they work with you. Yes, you have to master the basics in your trade, but you also need to think about some extras that you can do that don’t cost a ton, but really speak volumes in caring about your customer’s needs . My staff and I constantly look for ways to enhance our client's experience. We also focus on the finishing touches that show we care . We send hand-written notes, birthday cards and thank you gifts to our clients. We return their phone calls and confirm their faxes within 24 hours of receipt. We also try to make our processes be as simple as possible for them. What customer service improvements can you implement this week?
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The end of the year is fast approaching! It’s time to wrap up those final tasks that can make a big difference in reducing stress and preparing your business for tax season. Here’s a handy checklist to help you complete important end-of-year to-dos: Record Your Vehicle’s Odometer Reading Note the odometer reading for any vehicles used for business. This is essential for calculating your business versus personal mileage usage. Ideally, you have a mileage log, but at the very least, an end-of-year reading will help determine your annual total. Count Your Inventory If your business holds inventory, you’re required to do a year-end count and record its value. This ensures accurate records for taxes and helps you start the new year on track. Collect W-9s from Vendors Check if you’ve paid any contractors or vendors over $600 throughout the year, as you’ll need to issue a 1099-NEC form for them or a 1099-MISC for rent or attorney payments. The IRS provides free forms (call 1-800-829-3676), but be sure to order early as they can take a couple of weeks to arrive. Back Up Your Data Make sure to back up all your data, especially financial records. Double-check that backups are copying correctly and consider keeping a second backup for added security. Verify Payroll Tax Rates For businesses with payroll, check if your state’s employment tax rates have changed for the upcoming year. You should have received a letter with any updated rates by early December. Send them to your payroll processing team ASAP. Copy Thermal Receipts Many receipts, like those from gas stations and office supply stores, are printed on thermal paper, which can fade over time. Make copies of these receipts, as the IRS requires readable details, not just credit card statements, in case of an audit. Schedule Corporate Minutes If applicable, make note of your corporate meeting dates for the coming year. Corporate minutes are often required annually, so it’s helpful to mark them in your calendar now. Review and Update Your Business Plan Reflect on your business goals. What are your revenue projections for 2024? Consider how they compare to 2023, and think about strategies to boost profits and streamline operations in the year ahead. Set a Closing Date in QuickBooks In QuickBooks, set a closing date and password to lock down your financial records, helping ensure accuracy and security for the year-end. Review Accounts Receivable and Payable Check your outstanding invoices and follow up with any clients who haven’t paid yet. Also, settle any bills you owe to maintain accurate records and cash flow. Assess Estimated Tax Payments Review your quarterly estimated tax payments to ensure they’re accurate. Making an extra payment by the end of the year can help avoid penalties and reduce next year’s tax burden. Evaluate Your Tax Deductions Look for any additional expenses you can deduct this year, like office supplies or software subscriptions. You may also want to contribute to retirement plans to maximize deductions. Analyze Business Expenses Go through your expenses to identify any unnecessary costs you could reduce or cut in the coming year. This can improve profitability and efficiency. Renew Business Licenses and Permits Check if any licenses or permits are expiring soon and renew them in advance. This helps avoid penalties and interruptions in business operations. Review and Update Employee Benefits Review your employee benefit plans, such as health insurance and retirement contributions, to ensure they’re competitive and compliant with regulations. Evaluate Your Financial Goals and Set New Ones Look at your business’s financial performance and set realistic goals for the next year. Whether it’s increasing revenue, reducing costs, or expanding services, setting measurable goals can help guide your strategy. Completing these tasks will help your business start the new year in a stronger position and make tax season that much smoother.
For businesses where tips and gratuities are common—such as salons, spas, or other service industries—knowing how to record these amounts correctly is essential. Tips need to be accurately recorded to ensure employees are paid properly and taxes are managed. Here’s a simple guide on handling tips in QuickBooks Online (QBO), with options to make your process as smooth as possible.
Investing in your grandchild's future can be one of the most rewarding ways to secure their financial well-being. Whether you're contributing to a 529 College Savings Plan or setting up a UGMA/UTMA account, understanding the tax implications is key to maximizing your investment. Learn about gift tax exclusions, how to avoid the Kiddie Tax, and tips for using tax-advantaged accounts. This guide will help you make smart decisions for long-term growth while minimizing tax burdens.
Discover how to invest wisely in your grandchildren's future! Read our complete guide now.
Want to save money in taxes WITHOUT working harder? One way is to shift income from a higher bracket taxpayer to a lower one or even a zero rate-bracket. Let me give you an example of how this can work.
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