Right now is also a great time to begin the Form 1099 process and make sure you are ready to issue these forms in January. The due date to recipients, for all types of 1099 forms, is January 31, 2023. The 1099-NEC filing deadline with the IRS (whether you file on paper or electronically) is also January 31, 2023. Any other 1099 forms are due to the IRS by February 28, 2023, if filing on paper. If you file electronically, the IRS deadline is March 31, 2023. Penalties can be steep for late or incorrect filings and for non-compliance. It is important to review your business vendors and expenses and determine whom might need a 1099. If you have paid vendors and do not have a W9 on file for them, now is the time to collect that form as well. The W9 is necessary to help you determine if a company is needing a 1099, and provides the name, address, and tax ID data you will need.
In addition, once your books are up to date and ready for year end, you can use various reports to set business goals for the upcoming year. Your business financial statements provide insight into income and expense trends, shows which products are profitable, and how your business is doing in general. The statements can become your financial roadmap to plan for future expenses, business growth and assess your cash flow needs. You can prepare a budget for the upcoming year, and with ongoing, regular bookkeeping, use reports that will show you how your business is doing. Accurate financial statements of your business can be used for potential or current investors, used when applying for a loan, and used to monitor cash inflow and outflow. Keeping your books up to date and organized will allow you to take control of your finances and make smart decisions. You have the ability to start using your financial statements as a forecasting tool rather than just a historical record.
Whether you have been keeping your own books throughout the year, or if you haven’t done anything at all, it’s easy to get on track. Data can be entered into bookkeeping software from scratch, using information from check registers and bank and credit card statements. A lot of businesses also enjoy using bank download tools to bring the information from your bank into the software. If you work with a CPA or tax partner, they can do this work for you, or can take the books you have prepared and provide a review and clean up as needed. There are a variety of bookkeeping services to best suit your needs. Larson & Company is here to help so that you can enjoy a stress-free year end.
For more information about year-end business accounting, call Larson & Company today!
