End of the Year Prep

The end of the year is right around the corner, and every year we hear small business owners panicking about December’s rapidly approaching end, wondering what they have to do to end the year right. Not to worry – ending the year is actually pretty easy, as long as you don’t wait until the last minute to get everything done! So if you haven’t already, start thinking about…

Submitting any filings or dissolutions

Some of the most common questions we are asked revolve around the best time to form an LLC or incorporate. And while there are no ironclad answers to those questions, the beginning of the year is normally a good time to send in that paperwork. Deadlines and renewal dates are easier to remember, staying on top of your taxes is simpler, and you can even file your paperwork early and miss the beginning of the year rush if you opt for a delayed filing.

Alternatively, if you run a corporation or LLC that has become inactive over the last year, you’ll need to file a dissolution to notify the state that your business is no longer active. If you don’t, you could be responsible for paying annual fees and taxes on a business that isn’t open anymore.

Getting your finances in order

April 15th isn’t as far away as you might think. Now is the time to meet with your accountant, go over your numbers, and start getting ready to file your return. Your quarterly estimated tax payment is also due on January 15th, so it’s a good idea to start getting that ready as well. In fact, when you do meet with your accountant, go over how much money you’ve sent in this past year, and make sure you’ve sent in enough – if you haven’t paid at least 90% of what you actually owed for 2014, you could be fined. A lot of accountants also advise for people to, if they can, max out their 401k contributions for the year, since they get a tax break for the year the contribution was made. Schedule a meeting with your accountant as soon as possible to help make sure your on the right track to end the year on a financial high-note.

Figuring out what has, and hasn’t, sold

Most business owners have a pretty good idea of what their inventory looks like, or what services have been in high demand. But it’s a good idea to take a look at some hard numbers and figure out what’s bringing money into your company, and what isn’t. Bloat can kill a small business, so if something you sell is costing you too much money or time, consider cutting it. That way you’ll know what your focus points should be at the start of 2015.

Have any questions about ending the year? Leave them in a comment below! Or, if you need help incorporating, forming an LLC, or filing a dissolution, give us a call at 1-877-692-6772!