Fourth Quarter is upon us! 2020 has eerily flown by and we seem to be getting through what may have been one of the most challenging moments in the history of business. A time I hope you are able to optimistically reflect on, learn from, and rise above.
Q4 is an ideal time of year to launch your annual business review. We’ve created a SIMPLE 3-STEP process that will help you get real, deal, and heal from a year of highly uncertain twists and turns.
STEP 1:
TAX PREPARATIONS / FINANCIAL REVIEW:
Step One focuses on finances. Getting a good handle on your taxes now allows you enough time to implement last minute tax strategy, before EOY. Numbers can be a scary conversation; especially as entrepreneurs as our bank account may not always reflect what one might define as “success”. Our money demands daily review and discussion ensuring you’re making smart money moves year-round, not just on April 15th.
Tap into our go to financial/tax hacks to collect your coins with confidence:
- Create an e-file to sit on your desktop and a hard file both labelled 2020 TAXES to hold and organize any financial / tax documents needed for filing
- Review YTD GE’s, catch up and/or reconcile for the year where needed
- If you work with contractors/vendors, begin preparing 1099 documentation
- Collect outstanding payments from clients to ensure income is received and counted in the year, for the year
- Pay outstanding dues, fees and any in the year, for the year expenditures
- Make any last-minute business purchases and investments and write them off for the year
Pro Tip 1: work with a bookkeeper like Kristin Rocco of Nerdy Girl Services who manages you books daily, prepares your Quarterly GEs, helps organize your paperwork for your CPA prep, and takes the lion’s share of the above off your plate.
Pro Tip 2: to help save you thousands of tax dollars, work with a CPA, Certified Tax Planner and Tax Master like Janean Kong of Smart Tax and Business Solutions. She also helps you access capital to leverage life’s demands, provides proactive tax strategies throughout the year, and is able to represent you in court against the IRS should you need.
I hope this helps you begin to wrap up 2020 successfully. Stay tuned for Steps 2 and 3 in our upcoming blogs!