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- iHaveNet.com: Small Business Guide
Small Business Money Matters
Many entrepreneurs and small business owners dread it, but your end-of-year financial reconciliation doesn't need to hurt -- as long as you stay organized. You'll need to get your paperwork together and schedule an appointment with your accountant, who can lead you through some of the financial intricacies.
In general, think of this as a time to make sure all your ducks are in a row. Some elements of year-end financial reconciliation include:
Employee Wages and Taxes
Each quarter, you should have sent the federal government a IRS Form 941-SS, which summarized your employees' wages and withholding. At the end of the year, you will need to send the Social Security Administration a W-2 form showing how much each employee was paid, and how much was withheld. Also, you'll need to send in IRS form W-3, which is a summary of all the W-2 forms.
Furthermore, if your state has an income tax, you must send in an annual reconciliation along with copies of the W-2s; you may also have to send in proof that you're covered for workers compensation.
Make sure that the information you're sending to the Social Security Administration, the Internal Revenue Service, and the state are consistent because these organizations share information with each other.
Income, Expenses, and Taxes
Now is the time to try and get your business the lowest possible tax rate for the upcoming year.
Remember, any extra expenses you can take this quarter will offset your income and lower your taxes next year. There are some ways the system can help. For example, bonuses paid to employees by mid-March of next year can be taken as expenses this year -- this is an easy way to shift some expenses.
You may also take tax deductions for contributions to employee retirement accounts, non-collectible bad debt, and many capital expenditures.
Preparing for Next Year
Of course, this can all be much easier if you think ahead all year through, so the best time to begin next year's reconciliation is right after you've finished this year's reconciliation.
Small Business Guide
- Starting Up Your Business
- Coming Up With a Winning Business Idea
- Common Startup Mistakes
- The New Rules for Startups
- Business Incubator FAQs
- Naming Your Business
- Researching Your Business
- Your Personal Savings
- Registration, Licenses, and Permits
- Getting a Tax ID Number
- Fast-Growth Startup Resources
- Structuring Your Business
- Overview: Corporations
- State Offices of Incorporation
- Incorporate Out of State?
- Writing a Partnership Agreement
- Choosing a Board of Directors
- Basics of a C Corporation
- Basics of an S Corporation
- Basics of an LLC
- Basics of a Sole Proprietorship
- Basics of a Non-Profit Corporation
- Basics of a Professional Corporation
- Basics of a General Partnership
- Basics of a Limited Partnership
- Your Company's Public Relations
- Elements of a Successful Public Relations Campaign
- How to Use Your Press Coverage Effectively
- Press Releases
- How to Write a Successful Press Release
- Sample Product/Service Press Release
- Sample Commentary Press Release
- Sample Event Press Release
- Sample Tips Press Release
- Sample Personnel Press Release
- Effective Competitive Analysis
- Managing Purchasing to Maximize Cash Flow
- Top Six Pricing Mistakes Businesses Make
- How to Avoid Lowering Your Prices
- Bidding Basics
- Hiring Staff
- Creating an Effective Job Description
- Do You Know How to Pick Them?
- Little-Known Hiring Resources
- Classifying Contract Workers
- Tips for Successful Interviewing
- What You Can't Ask in a Job Interview
- New Hire Paperwork
- Small Business Insurance
- Types of Insurance for Small Businesses
- Small Business Insurance FAQs
- Insurance Resources for Small Businesses
- Home Office Insurance: Myths & Realities
- Small Business Resources
- Government Resources for Small Business on the Web
- Resources for Women Entrepreneurs
- Fast-Growth Startup Resources
- Small Business Security Resources
- Taking Time Off
- Your Pre-Vacation Checklist
- How to Take a Vacation
- Learning to Delegate
- Getting Away When You Can't Get Away
- Preparing for Tax Season
- Year-End Planning Tax Savers
- 10 Ways to Pay Less in Tax
- 25 Common Business Deductions and Expenses
- Avoid These Common Errors and Audit Triggers
- Understanding the Home Office Deduction
- Corporate Income Taxes Primer
- Employment Taxes Primer
- Sales Tax Primer
- Sole Proprietorships and Partnerships Tax Primer
- How to Get a Filing Extension
- Year-End Reconciliation
- Getting the Most from Your Accountant
- Developing Accurate Financial Projections
- Cash Flow
- 10 Ways to Help Increase Your Cash Flow
- Cash vs Accrual Accounting
- Bookkeeping and Record Keeping Basics
- Quick Ways to Get Through a Cash Crunch
- Projecting Cash Flow
- Cash Flow Triage
- Getting Funding
- Cash Flow Through Factoring
- Small Business Investment Corporations (SBIC)
- Traditional Funding Sources
- Non-Traditional Funding Sources
- Your Company's Credit
- How to Read a Business Credit Report
- Credit Terms Glossary for Your Small Business
- How to Protect and Improve Your Business Credit Rating
- Give Your Business the Financing Edge
- Employee Compensation
- Employee Benefits
- Bonuses: How To Be Fair
- Workers' Compensation Q&A
- Keeping Workers' Compensation Costs Down
- Payroll Management Choices
- Key Elements of Payroll
- Working with a Payroll Service Provider
- How to Create a Business Plan
Small Business Money Matters - Year-End Financial Reconciliation
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