The Taxman Cometh
Believe it or not, it’s time to prepare for year end. We’re still a couple months out, but the worst time to be taking care of essential year-end tasks is right as the ball is dropping on the new year. This month, let’s take a little time and go over some basics that will help you be more prepared for 2013.
- Cash is not the same as profit. Make sure you check in on your reserves so that you’re ready when the taxman cometh. It may have been a good year as far as profit, but it doesn’t necessarily mean you have a lot of cash on hand. You don’t want a big tax bill to leave you depleted, so start thinking about how you can save up.
- Get your house in order. Some of us are less organized than others, so if you’re someone who goes by the “I know it’s here somewhere” method of filing, make sure you dig up all the necessary tax documents. Keep in mind things like filing W-2s for terminated employees and accounting for 1099 employees.
We’ll keep talking about other things you can do to be ready for year-end as November goes on.
Michael Alter, payroll expert with an MBA from Harvard Business School, is a nationally recognized spokesperson providing thought-leadership and sensible advice to help accounting and payroll professionals build deeper more profitable relationships with clients. Alter, President of SurePayroll, writes the Trade Secrets column on INC.com and is frequently published in Bloomberg TV, the Wall Street Journal, and Entrepreneur Magazine.