4.5 Tips On Year End Money Management

Written by chicceo Published in

As the year winds down and you catch yourself thinking more and more about the eggnog, shopping, and holiday parties - it can be extremely hard to concentrate on the business! It’s even harder to concentrate on the dull subjects, like… well, bookkeeping. Yet, the end of the year is one of the most crucial times to analyze, reflect and plan for the next year of success. Elena Emma, co-owner of Booxkeeping has given us 4 ½  tips on what to focus on in December.

1. Schedule your tax planning appointment with your CPA
before the year end. Tax planning is one of the most overlooked, yet absolutely necessary components of small business management. You will be surprised how many deductions you can still create before December 31 with a smart approach. Tax planning also prepares you in case you need to pay out remaining estimated tax payments for 2012. (Need a good CPA? Check out our Chic Black Book for one that we recommend.)


2. Put together all business expenses paid out of your own pocket.
Let’s face it: in theory we are all supposed to separate business and personal transactions at any point in time, but in reality, it just doesn’t happen. The office supplies, the networking, the client appreciation gifts, occasional lunches with the team, and many other insignificant sums paid by personal credit, debit, or cash, can add up to a considerable amount of money that can be deducted from your bottom line on the profit and loss statement, thus potentially decreasing your tax liability for the business.

3. Collect W-9 forms for all your 1099 contractors
. W-9 is a standard form which is used to collect the information, like the name of the company, type of business entity, address, and tax ID needed to report 1099 income for your contractors. The deadline for 1099 processing is January 31, therefore a head start on the paperwork always helps to save time later on.

4. Sit down with your bookkeeper to analyze company performance.
If you haven’t had a chance to look at your financials in depth throughout the year, now is the perfect time. When you analyze past transactions, you learn about your spending habits and trends. This will help you to budget, expand or cut your expenditures  for the next year.
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½ ) Be proud of your business progress this year. Take time to reflect on what you have achieved in 2012 in the quantifiable terms, because however big or small it was, for you, it was an achievement and you deserve to be proud of it and reward yourself for it. Who knows, may be keeping a clean set of books for the whole year was among those accomplishments!
  

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