It’s time to take a breath of fresh air – Spring has begun, and March has finally turned the corner. We love this part of the year even more because it means tax season is over!
Doing annual taxes may be tedious for us all, but the bonus is it allows you to fine-comb your business’s finances and get a clear understanding of how your year Ebbed & Flowed.
Now that taxes are behind us (for a little while, anyway), it’s a good time to assess and organize the big picture details of your business.
This month, we want you to make sure to set yourself up for success! Take a look at our tips for setting you and your business up for your best year yet.
Reviewing Revenue & Expenses
Taking the time now to streamline a system to track your expenses and revenue throughout the year can help you in more ways than one (trust me, you’ll thank yourself next tax season if you act now!). Revenue and Expense are very different factors to your business, but they do go hand-in-hand! Knowing exactly where your Expenses are throughout the year will help you optimize your Revenue in the long run.
W9’s for Contractors
This is also very important for taxes at the end of the year. Preparing this as early as possible will save you and your contractors a lot of headache, both now and during tax time. Yes, contractors may be a tax-deductible business expense, but you still need to collect a W9.
Hot Tip: Keeping a positive relationship with your contractors should always be a priority – make an effort to pay your invoices on time, provide adequate lead times, share information about your business (vision, goals, etc.) and personalize your relationship.
Is S Corp Status for You?
S Corp Status, or Subchapter S Corporation, is a special tax status granted by the IRS that let’s corporations pass their corporate income, credits, and deductions through to their shareholders. This may help your business, so make sure to discuss with your bookkeeper if S Corp Status is right for you.
Hot Tip: If you’re paying your wages as an S Corporation, the wages are a tax deductible business expense.
Owner Salary (Yes, Your Salary!)
We want you to sit down and ask yourself some questions:
- How am I paying myself as an owner?
- Am I paying myself enough?
- Based on last year’s performance, do I deserve a raise?
Your money is important, too! You need to review your finances and make sure you’re getting a fair wage. This is your business, so you should feel the benefits of all your hard work!