Most incorporated businesses keep their fiscal year end in line with the calendar year end and thus December 31st marks year-end. If you are a sole proprietor, your year end is also December 31st. Of course Christmas comes first but before you know it, the year will be 2015 and it will be time for small business owners to consider their taxes.
We suggest to start getting the fun out of the way now. It is good practice to be proactive about getting your business organized so that when the New Year has arrived you are not rushing to put things together. Additionally, by setting up a meeting with us now, you can better tax plan before the end of the year. A common question that is asked by our clients is how to pay yourself/shareholders. Make sure this question is asked prior to year end so that the proper action is taken on a timely basis.
Here is what Jibe suggests you do this month:
- Start organizing your receipts: The more time you give yourself to think, look for and organize your receipts, the more you will be able to prepare. This will allow you to have the time to think about more deductions for tax purposes which will help you save money. We recommend organizing your receipts by month with the attached bank statement. We also recommend that you do this electronically as much as possible in order to reduce printing costs and help our environment. If you are unsure what can be deducted, see our blog about allowable business deductions here.
- Planning: By organizing yourself and considering your cash on hand, you may want to consider investing your money. Also, if you’re sole proprietorship is growing and doing better than expected, you may want to consider incorporating. Consult us before year end so that we can guide you on your available options.
- Reach us early: It is important as an existing client or as a new client of ours that you meet us before year end. We can help you with the suggestions above, consult on the future of your business and better tax plan with you in order to minimize taxes.
Jibe Accounting prides itself in working with small business owners to ensure that tax benefits and credits are being optimized and that you save money. We also specialize in personal taxes. Contact us so that we can help set you in the right direction.