Top 10 Things to do for 2016

| Business Briefs, Tax Briefs

  1. Get IRS Form W9 (Request for Taxpayer Identification Number) from your contractors for form 1099 preparation.
  2. Designate a “sacred” place for gathering tax records.  That way, you won’t waste time trying to find everything next January.
  3. Schedule quarterly budget reviews NOW.  By putting them on the calendar, you’re more likely to stick to them.
  4. If your company is an S-Corp, make sure your annual distributions are pro-rata based on ownership.  You don’t want to jeopardize your S-Corp status.
  5. It’s always a good idea to schedule an annual meeting with your bank.  This will assist when any refinancing or new financing opportunities present themselves, especially while interest rates are still low.
  6. Have you implemented any new banking techniques in recent years?  Consider remote deposit, positive pay, or a lockbox. These options could save you time and money.
  7. Many business leaders suffer from information overload.  Determine what reports are most beneficial for you and eliminate the rest.  This will make the monthly financial review process more efficient and effective.
  8. Now that last year’s taxes are filed, use this time to institute any new company policies you’ve been putting off.  Even minor changes are more effective in small doses rather than a large overhaul when these changes are overdue.  Your accountant may have tips for implementing these new processes.
  9. Every company should have a written fixed asset capitalization policy.  Recent changes could mean greater tax benefits – but only if you follow the rules.  Contact your accountant for more information.
  10. Notify your accountant if you have a transaction that is outside your normal activity such as a property sale, new business start-up or major change in employment status.  Understanding the tax effects of such activity before year-end may enable you to save tax dollars.  Your options after year-end may be limited.