As we head into the end of the year, specific questions need to be asked to ensure that you are prepared for 2020 taxes.
For business owners, now is the time to ask the following:
Is my accounting up to date, and are all my accounts reconciled?
How do my current year financials compare to last year?
Have I contacted my CPA to discuss planning?
Are the estimated payments that I made sufficient for this year?
Have there been any significant transactions that I need to talk to my CPA about?
Do I understand the tax implications of the PPP loan that will hopefully get forgiven?
Again, have I contacted my CPA to discuss planning?
Do I have the W-9s for all the vendors that are required to get 1099’s in January?
The only way to avoid surprises at tax time is to have:
- ·accurate and timely financial statements,
- open communication throughout the year with your CPA about significant transactions and future goals,
- an understanding of estimated taxes and the sufficiency of the payments you have made.
Tax miracles don’t happen in February for transactions with a tax impact. Tax planning is needed in 2020 to minimize your taxes and maximize your business results.