Year End Quick Tip

With less than a week left in the year, there are still a few things you can do that will make an impact on your taxes.

Donations to charity up through the end of the year will be deductible on your Schedule A if you itemize. Ask the organization if they are a qualified organization, or check Publication 78 at irs.gov by clicking here.

Contributions to your 401k up through the end of the year will lower your taxable income. For IRA’s, you have until April 15th to contribute. You may get a retirement credit for your IRA contribution, but it will not  reduce your taxable income.

If you have open bills, you can pay them this week to lower your net profit.
Be sure the expense has already been incurred and is not a future cost.

Lastly, some self-employed people can control when they get paid. Properly deferring income until next year can lower your tax liability for this year. Talk to your tax advisor or CPA about the proper way to defer income. The IRS web site, at www.IRS.gov also has a wealth of information.

And as always, be sure to keep good records!
A Step Up Bookkeeping Services wishes you a prosperous 2011!

Your year-end "To Do" List

It’s almost the end of the year, and although the holidays are coming, there are a few tasks you need to address before year end. Getting your financials in order now will start you off right for the New Year. A Step Up wishes you a very merry holiday season and a prosperous 2011.

1. Invoice your clients for all outstanding time and expenses. You want to be sure that invoices are sent for all work done during the year, and many of your customers will want to pay you for this work now to lower their tax liability. Make it easy for them to do so!

2. Review your open receivables and determine if any should be sent to an outside collection agency for assistance or if they are un-collectible. If you are on an accrual basis, you can write these off as bad debts and lower your business profit totals.

3. Reconcile all bank accounts, credit card accounts and loan accounts. You need accurate balances to make informed decisions for the future.

4. Prepare a budget for next year. Review this year’s reports and set a plan for realistic growth next year. What income categories were profitable? What expenses can be trimmed? Set a plan for how you will increase revenue and lower expenses in the coming months.

5. Double-check all employee addresses and social security numbers. Remind employees to submit new W4 forms if their tax situation has changed, or if they want to retain their federal ‘exempt’ status.

6. Get address and social security numbers for all 1099 contractors. Send W9 forms to obtain this information if needed. Review all names, addresses and tax ID information as well as the categories of payments made for accuracy.

7. Meet with your CPA to review your preliminary totals. There are things you can do now to reduce your business tax liability, such as contributing to a retirement plan or paying employee bonuses, but they often must be done before December 31st. It also may not be a good idea to make a large equipment purchase at this time. Depreciation deductions are not as favorable if the majority of the year’s purchases were made in the last quarter. Talk to your CPA about your tax strategy for this year. Of course, you will want to have your records in order and caught up to reap the most benefits from your meeting.

QuickBooks also has a ‘Year End Checklist’ that you can print out and check off items as you complete them. Select ‘Year-End Guide’ from the ‘Help’ menu in QuickBooks. You can print the checklist, or save your checked items right within your data file.

A Step Up Bookkeeping Services is available to perform a wide variety of your bookkeeping and payroll tasks, at a reasonable cost. We also offer QuickBooks setup and training services. Call today for a free no obligation consultation-603.679.2022

SMALL BUSINESS DO'S AND DON'TS

Charge your worth  First you need to do your research to see what your competition charges. Want more on Price Setting Process. Based on that knowledge, charge what your products and/or services are worth. Sometimes small business owners feel a little self-conscious about their fees; never compromise your value in order to get business.

Do:  Communicate the value of your services.

Don’t:  Be apologetic and tentative when talking about fees.

Be visible   Most small business owners are not as good at public relations as they are with their business specialty. But that is no reason to be a hermit.  It may feel awkward, however, you need to get out and be seen and heard. Attend community functions, meet your customers, and spend time socializing; the more you interact with others, the greater your networking opportunities. Remember, everyone is a potential customer. Find Local Happenings

Do:  Make appearances and talk about what you do.

Don’t:  Be pushy and overbearing.

Be Helpful  One account or customer can make or break a small business. By keeping the business "Golden Rule" you will be able to capture the big sales with the little sales. There is something about knowing you have had a positive effect on those you do business with everyday.

Do:  Make each interaction with customers the best one they have had.

Don’t:  Be arrogant and unresponsive.

Hire an accountant or bookkeeper to help with your finances

More than 50% of small businesses fail, and the majority of those failures can be attributed to poor financial management. Why draw yourself away from what you do best: producing your product? You may think that you will be saving money by doing your own accounting, but the truth is that a good accountant will save you money, and possibly your business, in the end.

Do:  Find someone who will do more than just keep your books; find someone who knows how to make your business more profitable.

Don’t:  Cut corners with your business bookkeeping.

 

Have a marketing plan  Remember Field of Dreams? If you build it, they will come. When it comes to your business you have more in common with Costner’s character than you might think; If you publicize, they will purchase. You need to get the word out in order to get customers through your door. Without customers, you won’t make any money.  Assign yourself a marketing budget and plan for your future. Want Help with Marketing Plan.

Do: Research marketing methods that work for your particular business niche.

Don’t: Spend lots of money on an unproven marketing technique.

A Step Up Bookkeeping Services is available to perform your bookkeeping tasks.  Call today for a free no obligation consultation.

New Workshop Dates

A Step Up Bookkeeping Services has added 2 new workshops.  Please click on the Classes and Workshops Tab above to view the dates and times or by clicking here