5 Tax Mistakes Small Business Owner’s MUST Avoid
The Tax Man Cometh again!!
Mistake #1 – Not using electronic filing systems.
January is the month when all W2 and 1099 forms must be created and delivered to their recipients by the 31st of the month. Were you aware that these forms can be sent electronically to most recipients!
There are some steps that hopefully you took all year long to make this process seamless:
For all 1099 Contractors whom you paid cash or check in excess of $600 you will need to issue a 1099 form. The information you need in order to do this is collected on Form W9. A good practice is to collect these from your contractors at the time of engaging them.
Before sending your W2 forms ensure your payroll filings all year long match the numbers that are showing up on your W2. When changes have been made and the amended filings were not followed through with it can become quite timely filing amending paperwork. Its also a good practice to annually review employee W4 information for changes of address and or deductions.
If you find that this is the only time of year that you will actually look at your numbers and put them together in some semblance of order, you are not alone. The myth that feeds this type of action is that the only reason you have numbers is to file your taxes with so of course now is the time of year you are doing it.
I’ll let you in on a BIG secret. The power of your numbers is using them all year long to make decisions with.
When you have current and accurate numbers to make decisions with you are able to course correct in the moment. Looking in the rear view mirror in January is just interesting information to use to plan forward with. Plus, it’s too late to make any changes to the previous year.
Are you ready to set yourself up to win in this new decade?
Do you know that having the systems and structures in place for money management will be a big piece for your success? Then I invite you to CLICK HERE and make an appointment to explore the best way to implement new systems for you. We have tried and true systems to work with any size business so we truly can meet you where you are and get you off and running for your best year yet!
This is our busy time of year so space will be limited, click here now and I look forward to talking with you!