It is THAT time of the year again. We are scheduling our year end tax planning meetings. Exciting, frightening and yes necessary! If you don’t have your bookkeeping for 2022 updated, NOW is the time. In order for us to do effective income tax planning for you, we need accurate and reliable numbers.
What does this mean? Well, we look at your year to date income and expenses. We analyze them to make sure that you have taken every single possible income tax deduction you can. Then we discuss the next few months and make an educated guesstimate of how the year will close for you and your business. You leave the tax planning meeting with THE NUMBER. This is the amount of tax you will owe in March or whether you have overpaid and should file your taxes in February to get a quick refund.
So, are you ready? Are your numbers ready for us?
Last year we had a client who assured us her Quickbooks was accurate and reconciled. We did her tax planning, she paid in what she owed and we all slept well. Then in March when we actually worked on her corporate tax return and compared her Quickbooks data to her Payroll reports, we found that payroll had been duplicated in Quickbooks. Disaster! She owed an additional $30,000. Please be careful. Make sure that you have a professional reconcile and complete your bookkeeping. This may sound expensive but it is less money than owing the IRS monies you had not planned for.
So again, are you sure you are ready for year end planning? OK, get your planning session scheduled and let’s get our plans in place.
Reach out to me anytime with questions or concerns.
