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……….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.
  WORKER’S COMPENSATION
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 
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.
  TAX ESTIMATES
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
the timing.
  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.
  BANKRUPTCY
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. 
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