We are entering the month of December which means we are getting closer and closer to 2019. With the new year fastly approaching, you need to make sure you are tying up any loose ends when it comes to your business. You want to make sure you are in a positive financial situation once the new year comes. Luckily, there are a few simple business tips you can follow so that you can end the year smoothly.
End Of The Year Bonuses and Purchases
At the end of the year, you might notice that you have room in your budget to give bonuses to your employees or even make a large purchase that will enhance your business. If you are going to do one or both of these tasks, you need to keep in mind the taxes involved. If you are giving your employees bonuses, remember that they are taxed differently than normal paychecks. New tax laws have been enacted, so make sure to check with your accounting professional if you want to make a large purchase.
Tax Forms Are Due
As a business owner, you should get all of your information together so that you can turn in all of your important tax forms at the start of the new year. Make sure to get in your 1099 forms in by January 31. So, be sure to get all of the important information from your vendors, such as their names, address, and tax ID information. You want to give your accountants time to file the forms, so try not to wait until the last minute.
Know When To Deposit Checks
Do you have sufficient cash flow to manage until January? If so, then you should look to file on a cash basis. You should hold off depositing your checks until January so that you can lower your tax liability.
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or info@plcfo.com so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and Google+.