ShindelRock’s Year-End Checklist for Small Businesses

As the year draws to a close, small business owners have a valuable opportunity to wrap up their financial matters on a strong note and strategically plan for the future. In this guide, we’ll explore a checklist designed to streamline year-end processes and maximize financial opportunities:

  1. Balance S-Corp Owner Wages and Health Insurance Reporting:
    • Reach out to your payroll providers before the last week of December to confirm the submission date for the last payroll of the year.
    • Ensure S-Corp owner wages align with IRS guidelines and are reasonable for the business.
    • Accurately report health insurance premiums to optimize available deductions.
  2. Prepare to file 2023 Informational Returns (Forms 1099 – INT/DIV, 1099-MISC/NEC, 1099-R, and W-2, etc.)
    • Review 2023 contractor and employee payment records. Beginning 1/1/2024, taxpayers who need to file 10 or more informational returns must do so electronically.
    • Review the completeness of 1099 vendor records. If any vendor is missing an identifying number or address, request them to fill out Form W-9.
  1. Report Cash and Non-Cash Fringe Benefits:
    • Review records regarding personal use of business assets, such as vehicles and phones, and separate personal expenses for tax purposes.
    • Review records for other potential fringe benefits that should be reported on a W-2
  2. Boost Deferrals to retirement plans 401(k)s:
    • Review owner year-to-date retirement plan elective deferrals (such as 401(k) or Simple IRA) to ensure maximized retirement savings.
  3. Address State FTE (Flow Through Entity) Tax and Other State Estimates Before Year-End:
    • Make state FTE (Flow Through Entity) tax and other estimated state tax payments ahead of year-end to maximize deductions and avoid penalties.
  4. Ensure Documentation for Deductions and Credits:
    • Organize necessary documentation for deductions and credits, including receipts and invoices, to ensure a smooth tax season.

As a small business owner, taking proactive steps now will set the stage for a financially prosperous new year. Contact ShindelRock for experienced tax advisors to help you make the most of this year-end financial review.