|……….WHAT YOU CAN DO NOW to prepare for year-end
|UNDERSTAND YOUR FINANCIAL STATEMENTS
|If you are not familiar with how to produce and understand the financial reports generated
|by QuickBooks, now is the time for us to teach you. A better understanding assists you
|in making better business decisions. Your financial statements tell a story in numbers.
|ADJUST YOUR GENERAL LEDGER TO AGREE TO THE PRIOR YEAR TAX RETURN
|Have prior year adjusting entries been entered into your ledger? If not, contact us.
|NEGATIVE EQUITY – make sure you have BASIS or any losses will be suspended
|If the equity section shows an overall NEGATIVE balance, contact us regarding basis.
|REIMBURSED EMPLOYEE BUSINESS EXPENSES - accountable plan
|If you reimburse "w2 type" employees for business expenses, you need to have an
|"accountable plan" established. That means you must base the reimbursement on actual
|expenses that are documented by the employee and provided to you.
|If you do not have such a plan, the reimbursements need to be included in the employees W2s.
|INSURANCE - track activity by type and also by shareholder
|Your tax return requires insurance to be broken out by TYPE and by SHAREHOLDER.
|INSURANCE - FYI - we offer insurance through our BestPay payroll partner
|We would be glad to get you a quote.
|Applies to employers with 3 or more full and/or part time employees.
|To avoid the annual sticker shock of the worker's compensation audit, consider getting
|"pay as you go" worker's compensation if you are using BestPay for your payroll service.
|REVIEW THE ASSET DETAIL SCHEDULE INCLUDED IN LAST YEAR'S TAX RETURN
|Let us know if there are any additions, deletions, corrections to be made.
|Cash distributions are "draws" against the profits of a S corporation.
|If more than 1 shareholder, cash distributions must be paid in proportion to stock ownership.
|Inform us if the distributions are NOT based on stock ownership.
|Post cash distributions to the equity section of your general ledger.
|KEEP PERSONAL AND BUSINESS ACTIVITY SEPARATE
|If personal activity exists, it should be clearly identified as such in your general ledger.
|Also keep it separate when presenting your paperwork to us for tax preparation.
|QUICKBOOKS SOFTWARE - verify/rebuild data file
|Run the "verify" utility of QBs to make sure your data file does not have any "problems."
|If it finds any problems, then run the REBUILD utility. Always back up your file first.
|S-CORPS – SALARIES for shareholders need to be reasonable
|If you take money out of your corporation, and it is not to repay you for loans, then
|the IRS wants you to meet "reasonable salary" requirements.
|TAX ESTIMATE PAYMENTS - post to your equity section in your general ledger
|Post to a "personal tax payments" account in your equity section.
|NON-DEDUCTIBLE BUSINESS EXPENSES OR LIMITATIONS
|Certain business expenses may be NON-deductible or limited. Examples would be golf
|club dues and meals and entertainment for clients and/or staff. If you have such activity,
|please make sure you post it accordingly to bring it to our attention.
|1099 FORMS – independent contractors
|The importance of this subject cannot be over emphasized. IN GENERAL:
|If you pay any NON-incorporated person or business $600 or more in a calendar year,
|you need to issue a 1099-misc form to that person ( EX: for services or rent.)
|Classifying the worker PROPERLY as W2 or 1099 is very important.
|PAYROLL - if we do your quarterly returns through QuickBooks
|Make sure all employee addresses and social security numbers are entered in your QB file.
|Run the payroll utilities program in QBs to make sure everything is OK.
|Do you have your Federal, GA withholding, and DOL#s? If not apply now.
|PAYROLL - bonuses
|If you give a bonus to someone who is a W2 employee, remember to withhold taxes!!!!
|PLANNING FOR UPCOMING CASH NEEDS
|Remember, 1st quarter unemployment taxes are usually highest.
|If you expect to owe taxes, plan accordingly by allocating funds.
|NAMES USED IN QUICKBOOKS
|If you added "numbers" or "words" to employee names, remove them.
|EXPENSING VS. CAPITALIZING COSTS - determine how to handle activity
|There is way too much information regarding this subject to include in this checklist.
|If you have such activity, we encourage you to contact us.
|Example - fix a hole in a roof. This is a repair and expensed currently. But if you replace
|the roof, you need to capitalize and take the expense over a number of years.
|Contact us to calculate a yearend tax estimate for you or to update one we've already done.
|SUGGESTIONS FOR REDUCING YOUR TAX LIABILITY from the BUSINESS side
|The following are SUGGESTIONS only. They need to be discussed based on facts.
|…..If on accrual basis, clear out uncollectable receivables and record all payables by 12/31.
|…..If on CASH basis, delay receiving customer payments until after 12/31.
|…..If on CASH basis, pay bills before 12/31.
|…..Consider funding retirement plans.
|…..Consider purchasing assets and using "section 179."
|REDUCING YOUR TAX LIABILITY ON YOUR PERSONAL SIDE
|The following are SUGGESTIONS only. They need to be discussed based on facts.
|…..Fund IRA by 4/15 if income is low enough and not covered by plan at work.
|…..Contact your plan administrator if turning age 70 and 1/2.
|…..Convert traditional IRA in 2010 to ROTH and opt to pay tax 50% in 2011 50% in 2012.
|…..Consider giving appreciated stocks to charity.
|…..Refinance personal debt with mortgage debt if it will help when itemizing deductions.
|…..Transfer assets to lower income children of yours.
|If you plan on transferring any investments to your child or grandchild, contact us to discuss
|REVIEW YOUR PENSION PLAN
|You should periodically update your plan. If you haven't done so lately, it's time.
|UPDATE YOUR CORPORATION MINUTES
|Contact your attorney to update or make a resolution to waive.
|ANNUAL GEORGIA REGISTRATION
|Make sure you pay the annual registration to avoid your corporation being dissolved.
|GEORGIA DEPARTMENT OF LABOR RATE NOTICE
|The GA DOL should mail you a notice that informs you of what your unemployment
|rate will be NEXT year. Please forward that notice to us ASAP.
|SETUP ONLINE FEDERAL AND GEORGIA ACCOUNTS
|Setup a federal EFTPS online account for handling federal tax payments and forms.
|Setup a Georgia online account for handling state tax payments and form filings.
|FILE GEORGIA POWER OF ATTORNEY FORMS
|Having a GA POA on file with the State can facilitate our assisting you with
|payroll and sales tax issues.
|SIMPLE IRA - deadline for plan setup, how it can save you tax
|If your business has a SIMPLE IRA setup, please let us know so we can make sure that
|you have it setup properly in QBs. Establish the plan by 9/30 of THE year contribution is for.
|RENTAL PROPERTY AND LLC
|Have you considered a LLC to hold your personal rental property?
|QUICKBOOKS SOFTWARE - download AND install latest release
|Make sure you have the latest release installed. Some of the releases are security fixes.
|QUICKBOOKS PROGRAM - should not be more than 2 years old
|Consider upgrading your QB program if more than 2 versions behind.
|PASSWORD in your QB file - we recommend you use one
|If you are not using a password, create one and let us know what it is.
|CHANGE OF ADDRESS
|If your address changes, let us know the new address. Also update your QB file.
|SALES TAX RATES
|If you charge customers sales tax, make sure you have the correct rates in QBs.
|QBs - accountant's copy
|Let's discuss when to use or not use this feature of QBs. It can save a lot of time.
|To be dischargeable, individual taxes must meet certain "mechanical" rules.
|3 Years since tax was due. 2 years since returns filed.
|GET FAMILIAR WITH THE year-end business CHECKLIST
|Look over the year-end checklist. If there is something you don't understand,
|please contact us and we will be happy to go over it with you.