Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.
As the owner of a small business, the end of the year is the time to start getting everything in order to start the next fiscal period. With the year-end rapidly approaching, there is no better time for you to start than now. The better prepared you are when the year comes to a close, the easier the new year's start will be. Here are a few tips to help you get your business in order for next year.
Consider A Digital Shift
If you are a traditionalist, there's a good chance that you're still doing much of your accounting the old-fashioned way. When you are relying on pencils and paper records for most of your business activities, it's time to start thinking about implementing digital accounting for the new year. Not only does digital accounting give you greater flexibility in how you transmit records to your accountants, it also automates much of the math to save you from manual errors and other similar issues. This can help you work faster, more accurately, and more responsively for your accountant.
Close Out Pending Accounts
While you are so busy keeping track of your daily operations, it's easy to overlook certain things, like customer accounts that haven't been paid. And, when you work with a variety of customers, that's a lot of accounts with payments due to you. If you don't close those accounts out by the end of the year, that's a hindrance to your cash flow for the period.
You should also review your outstanding invoices and settle up any bills that you owe. The lower your liabilities at the end of the year, the easier it is for you to start a new year with a whole new outlook and stronger motivations.
Get Ready For Tax Time
When the fiscal period comes to a close, that's when it's time to start drafting your year-end records for tax filing. Start by pulling all of your year-end revenue and liability reports, including not just your income, but also your operating expenses. You will need all of those things for your accountant to calculate your taxes accurately. If you have filed quarterly estimated taxes, you should also gather that data, because you can deduct your previous payments from your tax liability.
Small business owners often focus so heavily on their business operations that they struggle with their accounting and tax records. This is especially true at year-end, because there is so much to think about with taxes coming and records to finalize. Talk with your business accounting firm about other tips and steps that you should follow to close out your year successfully.
Contact a company like Emerald Financial Partners to learn more.
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