2012 Is Off and Running

As 2012 quickly ramps up, it's time to start pulling information together for tax returns, send out your W-2s & 1099s, calculate your personal use tax, and tally up your fringe benefit information, and of course add up total mileage.

While few business owners enjoy this time of year, it's a great time to clean up your 'business loose ends".

Here are couple of items you will need to have on hand (as of the last day of your tax year).

1. Cash/Check/Savings account balances

2. Accounts receivable - any invoices that are still owed to you?  any bad debts (accounts you will never receive)?

3. Inventory - yep - time for a physical count of all the 'stuff' sitting on the shelves, in the warehouse, or in storage that is held for resale  and of course a count of what has been used for personal use.

4. Fixed Assets - Any new equipment, furniture, or vehicles this year?  Or is there anything you have disposed of or traded?

5. Notes Receivable/Employee Advances - have you lent any money this year?  Time to add it up.

6. Who do you owe?  - List out your accounts payable that may go into next year.

This is also the time to update your accountant (if you haven't already) on your share of ownership or officers, pension plans, life insurance, and medical and disability premiums.

There's a lot to manage at year-end.  Start the year off by gathering your information together asap.

Are you a new Colorado business?  We can help you get started on the right foot with our bookkeeping and accounting services.  Give us a call 970-224-3366.

New Year's Resoltuion #1

Track Mileage Better 

Use free apps for Android and iPhone using GPS or trip meter info. Many will export to Excel via bluetooth - time saving, money saving. 

What really matters? Number of miles, where you went, when you went, who you met, what vehicle you drove, and why you went.  Easy and verifiable.

Just what we like :-)

Enterpise Zone Deadline Approaching

Is your business located in an Enterprise Zone?

New legislation has changed the Certification process for activities performed on or after January 1, 2012 that will earn an Enterprise Zone (EZ) Tax Credit.  If your business will perform an activity that will earn an EZ Tax Credit on or after January 1, 2012, Colorado Revised Statute 39-30-103(7)(a) requires that you receive Pre-certification prior to commencing the activity that will earn the credit.

If your business performed all activities that earned an EZ Tax Credit prior to January 1, 2012 only Certification is required.

Click here to view guidelines regarding when Pre-certification and Certification is required.

Not sure if this applies to you?  Give your accountant a call. The deadline is quickly approaching!

Start Planning for Year End

Already we have reached November and year end will be upon us.  To save some anxiety on your upcoming tax return for 2011, here are 5 things you can do to ease the year end process and possibly reduce your liability.

1. Schedule your year-end tax review/tax projection meeting with your accountant.  What is your tax liability going to be?  Do you need to purchase some new equipment?  Contribute to your 401K?  Or set aside some money for cash flow?  When you estimate your tax liability for 2011, consider adjusting your final quarterly voucher or your withholding to avoid underpayment penalties. Check estimated payments for your C corporation for the same reason.

2. Schedule your year-end review with your financial planner.  Is it time to put some extra money into your IRA?  Have you maximized your 401K contributions?  Or, do you need to consolidate those 401Ks?

3. Do you have bad debts?  In this economy, it's possible that you haven't been paid for work performed.  Be sure to talk with your accountant about deducting this on your business tax return.

4. Remember, if you are self-employed you need to pay social security for your wages and the company's portion, be sure you talk with your accountant about calculating your social security wages.  If you are an LLC, does it make sense to elect for an S Corporation for 2012?  If so, you must elect before March 15 of 2012.

5. Consider prepayments for 2012 in December of 2011.   Do you have a child in college?  Expenses paid for you, your spouse, or your dependents will count on your 2011 return if you qualify for education tax credits. Breaks include the American Opportunity Credit, which can reduce your tax bill by up to $2,500 and is partially refundable.

Final tip:  Put those receipts and records together now and get your books clean so you aren't surprised by errors next spring. 

For more tax saving tips, check out our newsletter.

Please note:  This article is for informational purposes only and is not intended to be guidance nor advice.  Do not apply this information to your situation without additional details and professional advice. Tax laws contain varying effective dates and numerous limitations and exceptions that may or may not apply to your particular situation.   For specific details and guidance, please contact our office.

Upcoming Client Workshop: Budgeting & Forecasting - What every business owner should know for 2012

Are you 

Uncomfortable planning for an unforeseeable future?

Concerned about how to begin planning for next year?

Frustrated, wondering where the money goes?

Join us on Tuesday, November 1, 2011

8:00 am - 9:30 am 

for our Budgeting & Forecasting Workshop

Where you will

Develop a budget for 2012 based on your financial data

Establish an understanding of forecasting

Leave with a budget in place for 2012

Space is limited to current clients.  

Call 970-224-3366 to reserve your spot today.

Or email us at info@sjwickcpa.com