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December 22, 2022 | Posted in:

Year-End Tax Planning for Your Business to Prepare for 2023

As 2022 comes to a close, it is time to get your ducks in a row and get ready to file this year’s tax return. Here are some things to keep in mind to best prepare yourself and your business for the upcoming year.

Don’t procrastinate.

The more you delay tax planning, the more trouble you will find yourself come tax season. Giving yourself an adequate amount of time to prepare you and your business for year-end and the upcoming tax season will help ensure a smooth and painless tax season.

With the end of the year corresponding with the holiday season, time seems to fly by. Make sure that you set yourself aside time weekly to work on tax planning.

Assess your financial health.

The end of the year is a great time to take a look at your business’s financial health and status. Important documents to look at to give you this information include:

  • Balance Sheet
  • Cash Flow Statement
  • Statement of Retained Earnings
  • Profit and Loss Statement

This collection of documents will give you insight on your gains and losses through the year. Information like this can be extremely helpful when it comes to setting a plan for your business.

Defer income.

Pushing your payments due to after January 1, 2023 will delay it from being counted as income for 2022. This will provide you with more time to pay taxes on your business income and make your upcoming tax season easier to grasp financially.

Gather your documents and receipts.

There are multiple documents that you will need accessible before you begin filing your tax return. It is best to gather these ahead of the start of tax season so you are not scrambling to find them with the deadline approaching. Some forms you will want to have handy include:

  • Income Statements; such as W-2s and MISC-1099s
  • Tax Deduction Records
  • Expense Receipts
  • and more!

Consult your accountant.

And last, but certainly not least, now is the time to contact your accountant. Do yourself and your accountant a favor and get ahead of things so that no one feels rushed or panicked this tax season. Talking to your accountant now will give them the opportunity to let you know what they need from you while also giving you plenty of time to get it done.

 

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