End Of Year Business Checklist (for business clients)
Happy Holidays!
I hope you have been enjoying this holiday season! Below are some business reminders as the end of the year approaches.
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PPP Loan Forgiveness Applications If you received PPP funding, reach out to your bank as soon as possible to complete the online PPP Loan Forgiveness application. Amounts under $50,000 qualify for the EZ application. If your bank does not provide guidance to you, don’t hesitate to call, email, or text me if you have any questions regarding this application. |
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For purposes of 1099’s being issued to your subcontractors, please total the payments made in 2020 to each subcontractor who provided services to your business. Review the name used on the check to each subcontractor. Any payments made to company with a designation of: Inc, Incorporated, Corp or Corporation can be ignored since 1099’s are not required to be issued to corporate subcontractors. Please note than an LLC is not a corporation. For all those who were paid $600 or more, they will need to complete and give you a W-9. The form can be obtained from the IRS.gov website. Please provide all W-9 forms including the total amount paid to each subcontractor in 2020 to us no later than 1/8/2021 so we can timely prepare the 1099’s for you for 2020. Remember this information for 2021 & subsequent tax years and do not pay a subcontractor over $600 until they give you a completed W-9. Keep all W-9 forms securely in your files and forward to us on January 2nd each year. |
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Retirement plan contributions for 2020 Try to max out your retirement contribution for 2020 by the plan due date (including allowable extensions). If you have questions regarding the amount you are allowed to contribute, the due date, or type of allowable plan for your business, don’t hesitate to call, email, or text me. |
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Inventory on 12/31 For those who have parts, supplies, products, etc. that were purchased in 2020 to be used or sold in 2021, a physical inventory count should take place as close as possible to 12/31 each year. Inventory on hand at 12/31 should documented at your cost. We will need this information to prepare your 2020 business tax return. |
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Asset Purchase prior to 12/31 Before you make a last minute purchase before midnight on 12/31, make sure that you really need that equipment, furniture or vehicle. Deductions for last minute purchases will help reduce your profit, help reduce your taxes, but will also reduce your bank account balance. Contact me if you would like to discuss the tax advantage of a purchase you are considering. |
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Loan Balances as of 12/31 For any outstanding business or vehicle loan, line of credit, &/or credit card balance(s) as of 12/31, please contact the company to get the loan balance you owe them as of 12/31/2020. I will need this information to adjust your balance sheet &/or to record on your 2020 business return. |
