December 31st is fast approaching and some advanced planning will allow for smooth year-end processing. Below are a few helpful dates to plan your activities.
K-1 PlanningToday: Meet ASAP with your accountant for tax planning What you should have ready for your accountant:
- Access to your QuickBooks file. You could send them a portable copy or provide four excel spreadsheets, including:
- P&L for 2017 through 10/31
- Balance Sheet
- GL (include the debit and credit)
- Trial Balance (compared to prior year)
- Estimate of your November and December Profit
- Charitable Contributions
- Investment Income
- Expected profit sharing contribution
- Company paid any medical insurance
December 10, 2017 – Are your financial records up to date? Do a quick audit to assure your financial information is correct.
December 15, 2017 – Have you responded to all your accountant requests for information?
January 15, 2018 – Have you started a conversation with your Accountant on Year-End Closing?
February 1, 2018 – Is year-end closed? Forward the information to your Tax Preparer
February 15, 2018 – Call Tax Preparer for progress report
February 28, 2018 – Forward completed K-1 to your investors
1099s are required to be sent to any vendor that has paid more than $600 and now is the time to make sure all information is ready.
December 2017 - Review Vendor Contact File for Completion
- Vendor Name, Address & Tax ID number
- W-9 on file and signed by vendor
- Vendor file tagged correctly for 1099 reporting
January 1, 2018 – Accumulate data to forward to Accountant / Tax Preparer for 1099 filing
January 31, 2018 – Mail 1099 to recipients
January 31, 2018– Summary form 1098 due to IRS
Need more guidance with your tax planning? Contact BudgetEase for a free consultation.