Year-End Checklist For 2020 and Beyond!
So the year is almost over, but before it is over now is the perfect opportunity to plan for the next year for your business. Although 2020 has been absolutely unpredictable, 2021 doesn't have to be that way. If 2020 has taught us anything, it is to be ready for the unexpected so your business will continue to thrive even during tough times.
1) Financials Statements
Your financials need to be accurate and you need to make sure that all of your transactions from your credit cards and bank statements are included.
2) Asset Purchase Agreement
If you purchase a vehicle or equipment, it is important that you record the purchase accurately so that you will not miss out any deductions.
You need to be mindful of the business loans you've obtained throughout the year and make sure all principal payments and interest expenses are recorded. The best method is to make sure you reconcile these payments to the actual loan statements.
This is a new form applicable to independent contractors. If you use the help of contract labor, be sure to obtain an updated W9 form with correct tax ID and address.
5) Payroll Reports
To make sure you have no outstanding tax liability, you need to ensure that your payroll forms are filed timely and all tax payments are submitted for the year. Often, business owners who prepare and submit these reports forgot to submit 940 payment, due annually.
6) Tax Plan > 1040ES
Understanding your tax position is crucial especially if you do not want to have surprises such as owing HUGE tax bill on April 15. Hence, getting a tax plan update to make sure you have made sufficient estimated tax payments will help you have better control of your cashflow position. Your last payment date will be Jan 15 2021. Beyond that, you will incur underpayment penalties.
7) 2021 Forecast/Projections
Last but not least, planning for the future - preparing for 2021. Whether you plan to grow, expand or just maintain your business at current level, planning is important. If you fail to plan, you plan to fail. Set sometime aside for goal setting, get your team members involved. This would encourage teamwork, ownership and will motivate your staffs to work together by better understanding of the vision and mission of your company. For OSC clients, we encourage you to utilize our very powerful EpicLedger Financial Planning Tool to help develop sales forecasts and set budget.
So after all that planning you are ready to begin 2021 with a head start, the link to the checklist is down below! If you need help in tax planning to minimize your tax bills, please do not hesitate to call us at (832) 295-3353, or you can also set up an appointment with us at https://xqcpa-bookme.acuityscheduling.com/schedule.php. Last but not least, please like and share our daily posts. We look forward to hearing back from you!