October 27, 2022

Year-End Considerations to Prepare for Small Business Tax Filing

Year-End Considerations to Help Small Business

As we head into the final few months of the year, now is the time to make sure your bookkeeping is up-to-date. Bookkeeping has many major benefits that include making life easier for tax time, keep track of cash flow and catching errors or fraud. We suggest considering future income/sales and creating a summary of that information to assist in year-end tax planning and decision making.

As businesses grow, using a complete accounting software, such as QuickBooks, becomes essential. We have a team of QuickBooks Certified Advisors who can help you implement, learn, and navigate the software. Reach out to schedule a consultation to start the year off right!

At Holsinger, we use a simple excel spreadsheet to summarize information for Schedule C preparation. Completing this spreadsheet will not only help you organize your expenses but can also help to minimize your tax preparation fee.

schedule c worksheet

It is important to keep track of expenses throughout the year with the help of some apps that can be seen below with the type of people that they benefit the most.

• BizXpenseTracker (BXT) – Best for Small-Business Owners
• MileIQ - for tracking business vs. personal mileage
• Concur Mobile - for Tracking Travel Spends
• Expensify – to Capture Receipts
• Goodbudget– Best for Beginners

When keeping track of expenses in these apps, be sure to keep your personal expenses separate from business expenses. We are happy to schedule a consultation to review your current year activity, assist with completion of your annual activity or to discuss planning opportunities for your small business.

Retirement Contributions

Retirement plans are good for all businesses as they produce tax advantages for both you and your employees. Benefits for an employer include:
• Employer contributions are deductible from taxable income
• Tax credit for the first three years of opening a plan
• Assets grow tax free in the plan
• Plans can attract better employees.
It is best to research different retirement plans offered by different firms to see what plan best benefits your type of business. For small business retirement plans, see IRS Publication 560 (https://www.irs.gov/publications/p560) or call us to discuss your options.

Bonus Depreciation

This is the last year for 100% bonus depreciation with TJCA announcing that qualified property placed in service through 2022 with be 100% deductible dropping 20% each year until 2027 when currently it will be phased out.

bonus depreciation table

This article was written and contributed by our tax team colleagues at Holsinger P.C. , under direction of senior tax manager, Jessica Moslander. This information is not meant as tax advice but merely an informative piece. We are happy to consult with you and provide detailed guidance given your unique situation to make the best possible tax position for the upcoming filing. Please feel free to contact us with your questions and to schedule a consultation.

Article written by Jessica Moslander