Before the clock strikes midnight! Business checklist:
December 23, 2015
Things to do by December 31!
Businesses, while this may not be a complete list, there are many things to consider and get done now:
1. Record your odometer reading on your business vehicles, and vehicles used for business.
2. Make sure your mileage logs are up to date. No mileage log, no deduction. Even if you use the actual expense method you generally need a mileage log.
3. Reimburse yourself from your business for qualified home office expenses and other business expenses paid for out of nonbusiness accounts.
4. Health insurance reimbursements pretty much went away with the Affordable Care Act, however, if you are a shareholder employee of your S Corp and have an individual health plan, you have to pay the premium out of the business account, add the premium to your Federal and State wages on your W-2, and list the amount of the premium in Box 14. This only works through the end of 2015. January brings all new rules, as far as we know right now.
5. This is the last week to plan and save on taxes. Once January 1st comes around there are few tax saving strategies to apply, and we switch from planning to compliance. An investment of a couple hours of our fees before year end, could save you thousands in taxes.
6. Should you buy that big truck to save on taxes? Contact us and we will setup an appointment to discuss what makes the most sense for you. What works for your friends, isn't always the best option for you. No two situations are alike.
7. 1099's: Whoa, they are really coming after businesses on these. New big penalties apply. Make sure you get updated W-9s now from all of your vendors. As an even better practice, get a W-9 each year before the first check goes out. Know the rules, it could be costly if you don't.
8. Have your books done and ready to go. This also helps with last minute tax planning.
9. Make sure LLC operating agreements are up to date, especially on how the entity LLC is taxed, and distributions to members are spelled out clearly. Not having the right language and not following "corporate" formalities could cost you. Contact your attorney and get it refreshed and squared away.
10. Plan for the unexpected, make sure beneficiaries are current on all of your accounts, and wills are updated.
11. Do a physical inventory count and record it at cost based on your business' inventory valuation method.
Being proactive, planning, and prepared can save you thousands. What time is it? It's almost near. Don't get caught leaving thousands on the table. It's a wise investment to visit with us before it's too late. See our Tax Planning and Preparation page on our website.