12/8/2021 Prev Next Email Share × Share On: By Rebeca Seitz Yes, it’s that joyous time of year to revel in gift-giving, holiday baking, and gathering with family and friends. But December also presents business owners with a unique opportunity to situate their business for success in the coming year. That opportunity comes in the form of organizing for end of year accounting. We know, we know, accounting and taxes are not a fun time for most business owners. They may even be something you avoid discussing until the last possible moment. Why give them headspace now, when everyone is singing carols and decking the halls? Paying attention to accounting prep now could set your business up for thousands of unexpected dollars in savings – and wouldn’t that be a lovely way to kick off 2022? So, pour yourself a glass of eggnog or a cup of mint hot chocolate and check out these tips from CPA Marie Grasmeier of Grasmeier Business Consulting in Fort Myers, Florida. You might just end up giving yourself the gift of an added bonus! CPA Marie Grasmeier’s Tips to Prep for End of Year Accounting • Asset Management – Review your Fixed Asset Schedule and dispose of obsolete assets, invest in new equipment and vehicles to take advantage of IRC Section 179 direct expensing and Bonus Depreciation. You’re already in a buying mood. Why not apply it to equipment and vehicles for the business? Buying at year’s end could mean a better return on the purchase than if you waited until the calendar ticks over to January. • Income Management – Manage the timing of Income and Expenses to align with your objectives, postpone income and accelerate expenses and make sure your tax reporting is on the most accurate and beneficial method of accounting. Your CPA should be able to advise, for example, whether that end of year bonus will end up costing you more than it’s worth. • Business Management – Review existing entity and operational structure and ensure it is still optimal. Examine your retirement plans and employee benefits, set up new plans and make modifications before year-end. Maybe your business is an LLC right now. Could it make more sense to switch it to an S corporation? Your CPA can explain the tax benefits of each structure to help ensure you’ve chosen the structure that best serves. • Tax Management – Speak to your CPA about tax credits that you may qualify for such as the Employee Retention Credit and various credits for research, health coverage, and energy efficient equipment and vehicles. Implement a strategic cash plan for paying estimated taxes without being subject to under-payment and late-payment penalties and associated interest. Now pour yourself another glass and give your CPA a quick call. In January, you’ll be happy you gave your business the gift of good accounting.