As the end of 2023 quickly approaches, one of the top questions we get from small businesses near Orlando, FL is, “How can I prepare my books for the end of the year?”

Well, there are a lot of steps you can take to prepare your small business for 2024 planning, taxes, and more. Our team at UpFront CPA has put together some essential tasks to get done as soon as possible to make closing out the year easier for you and your outsourced accounting or bookkeeping firm.

#1 End-of-Year Tax Tip for Small Businesses Near Orlando, FL

Undergo Tax Planning with Your CPA

The most important step Orlando small business owners need to take before the end of the year is to meet with their accountants to review their finances and plan for their tax returns. During these meetings, the tax expert will help you gather and review key financial information, and determine what else they need to prepare your taxes. But they will also discuss key financial information with you, including your business tax structure (and if it needs to be adjusted), if you need to make any end-of-year purchases, and if there is anything you can write off from the records before completing your taxes. They will also help you create a financial plan for 2024, with new business goals and tax strategies.

Ideally, you should meet with your accountant throughout the year to create a tax-reduction strategy, so you don’t need to scramble at the end of the year.

#2 End-of-Year Tax Tip for Small Businesses Near Orlando, FL

Get Financial Reports

While meeting with your accountant is the most important step, the next step small business owners need to take is to gather key financial reports. These can include profit and loss reports, balance sheets, payroll reports, and other essential financial information that will help you plan for next year. While you and your outsourced accountant should review these reports monthly – as these will help you plan for your taxes year-round -- it’s crucial to analyze them at the end of the year. Getting this information gathered and organized will make it easier for your accountant to process the data while preparing your taxes. The more organized you are, the better chance you have of avoiding paying penalties for filing late tax returns.

#3 End-of-Year Tax Tip for Small Businesses Near Orlando, FL

Reconcile Accounts

Our third tax tip for preparing for the end of the year is to reconcile key accounts – including your bank accounts and accounts receivable – and make sure your records match your expenses.  If you see any discrepancies, start investigating and asking questions to get to the bottom of it as soon as possible. If you have missing payments from customers or credit card charges you’re not certain about, try to resolve them quickly so you can close out the year.

You should also review any outstanding bills you owe. If you have invoices for your vendors that you haven’t yet paid, make sure to submit all payments before the end of the year.

#4 End-of-Year Tax Tip for Small Businesses Near Orlando, FL

Get Tax Forms

No. 4 on our list of end-of-year tax tips is to make sure you have all of the necessary tax forms. This can involve more documents than you might think, so it’s important to get a list from our Orlando CPA and start gathering the documents. This can include all forms from employees and contractors. You also need to submit W-9 forms to all vendors and contractors so you can distribute 1099 forms to them in January.

#5 End-of-Year Tax Tip for Small Businesses Near Orlando, FL

Review Payroll Requirements

One of the biggest obligations small businesses have at the end of the year is to ensure they are meeting all payroll requirements. This includes having all of the correct information for employees, including their social security number and current address. You also need to know their deductions and benefits.

It can be easy to miss information on new hires throughout the year, so it’s essential to review this information before the end of December to ensure you have the information you need.

While reviewing this information, you should also check your total payroll for the year, and how close you came to budget. This will offer key information to use for staff planning purposes in 2024.

Let UpFront CPA Prepare Your Orlando Small Business’s Taxes

To prepare your small business for the end of the year and get your taxes ready, call our team of accountants at UpFront CPA. Our experts can perform tax preparation services and tax reduction planning.