We have officially reached the middle of the calendar year. This happens to be the best time for small businesses to do a mid-year tax checkup for a number of different reasons. When you wait until the end of the year to think about taxes, that allows surprises to sneak up on you that could put you in a tricky financial position. When you take a close look at your tax situation in the middle of the year, you can quickly make any adjustments that might be necessary to help you avoid headaches at tax seasons. Mark Dicus & Company is here to talk about mid-year tax checkups and what they entail.
Importance of Mid-Year Tax Checkups
As a small business owner, you need to know where you stand financially at all times. However, when you are busy with daily operations, it can be easy to lose the picture. When you have a mid-year tax checkup, you can take a closer look at income, expenses, payroll, and projected profits so that you can plan better. You may find that business conditions can change throughout the year. When you stay on top of these changes, it allows you to make the adjustments you need to stay tax compliant. Here are some of the things you should be checking on in a mid-year tax checkup:
– Employee & Owner Withholdings: The first thing that you should take a close look at is withholdings. If there is an increase in income for both business owners and their employees throughout the year, you might need to increase your withholdings to ensure you are covering total tax obligations.
– Estimated Tax Payments: There are many business owners who make quarterly estimated tax payments to cover taxes for the year based on the previous tax year. If you have higher than normal profits, it could mean that you need to increase the amount of your quarterly tax payments so that you aren’t left with a huge bill.
– Income & Deduction Trends: Another thing that you need to take a close look at is income and deduction trends. Look at where both income and expenses are at to help you determine whether or not you need additional deductions.
– Plan Year-End Strategies: Waiting until November or December to discuss tax strategies is a mistake that many small business owners make. The earlier you start to plan for taxes, the better off you will be. There is no time like today to get started.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you are ready for a mid-year tax checkup, you can turn to Mark Dicus & Company to take care of it for you. We will help you make sense of all the financial reports that can provide you with an excellent picture of where you stand as a small business. We will help you feel ready for tax season long before it gets here. Call us today!