As 2008 draws to a close, business owners have more on their mind than the holidays. Taxes and tax planning need to be given some thought before you ring in the new year. Early December is a good time to get accounting caught up and make some projections for the remainder of the year. If a business is new and does not have an accountant, now is a good time to find one. Your accountant can make recommendations on whether to purchase that new piece of equipment you want now or wait until January. Your accountant can also make suggestions on maximizing your expenses.
It is not too late for your accountant to do some tax planning for 2008. If you have not made any estimated tax payments, your accountant can determine if you need to make one or not and save you from paying unnecessary penalties and interest in 2009. Another reason to hire or touch base with your accountant now has to do with payroll.
If you prepare your own payroll tax reports throughout the year, you should consider having your accountant handle the fourth quarter payroll reports and W-2s. A lot of IRS and state tax notices can be avoided if steps are taken to make sure all the wages and taxes reported throughout the year tie into the final reports. Most business owners rely on software to generate the reports and put full trust that what has been printed from the software is correct. Unfortunately, that is not always the case and software is generally not dynamic enough to flag potential errors. In the long run, it can provide peace of mind and save money and many needless hours responding to notices if a professional processes your payroll reports at year end.
Allowing your accountant to get involved well before the taxes are due is always a wise decision. You will save money (and who doesn’t want to save money in this economy) and you will be able to have some quality time with your accountant before tax season makes that nearly impossible. I encourage you to contact your accountant or find a new accountant now before the year ends so you can leverage your budgeted accounting dollars for maximum use.