2014 End of the Year Tax Planning List for Small Business Owners

Colorado Business CPA, LLC

November 5, 2014

Colorado Business CPA can help you to determine tax savings strategy by preparing review for your tax situation. We are providing a check list that every business owner should implement when it comes to the end of the year tax planning and tax preparation process.


Business Entity Selection

Am I operating as an LLC (Limited Liability Company)?
Should I incorporate my business?
Should I change my business into  S-corporation?
Can I change my LLC into S-corporation status effective January 1,2014?
What other issues should I consider?
Have I filed annual periodic report with CO State Department?

Business  Software selection

Pros and Cons of Using QuickBooks
Should I choose Desktop version of QuickBooks or QuickBooks Online?

Bank Accounts

Do I use separate business  bank accounts?
Do I reconcile my accounts at the end of each month or quarter?
Do I complete Bank Reconciliation at the end of the year?

Accounts Receivable

What is my collection strategy for Accounts Receivable?
Do I accept Credit Cards for fast payment processing?
How Accounts Receivable balances affect my gross income?


Am I required to do a physical count of inventory at the end of the year?
Do I utilize POS (Point of Sale) system? Does it  connect to my accounting software?

Loans to Shareholders  / Members                                     

If I borrow from my business, do I need documentation?
Is borrowing money from my business creates  taxable income to me personally?

Fixed Assets / Purchases/ Deduction

Do I review my fixed asset list every year for dispositions and additions?
Am I aware that fixed asset list relates to my personal business property taxes?
What is Section 179 Depreciation Deduction?
Can I use Section 179 Deduction for new and used asset purchases?

Accounts Payable

Can I prepay my bills?
How Accounts Payable balances affect my income?

Credit Card Charges and Payments

Can I prepay my expenses with my credit card?
Do I reconcile my credit cards?
What to do when I use the same credit card  for business and personal purposes? Should I only record business expenses paid with this credit card?

Loans from shareholders

Can I lend money to my business?
Do I need any documentation to come along with it?
When my business pays me back, is it taxable?


What does it mean to have a positive Retained Earnings?
Why is it important?

Gross Income

Gross Income -Accrual method versus Cash method
Timing on your income
“Constructive Receipt” rules


Does your business have payroll?
How do you pay yourself?
How to determine reasonable salary for shareholders of an S-corporation?
Are medical health insurance premium paid in 2014 shown on my  W-2?
Why is it important to disclose health insurance of shareholders with 2% or more business interest in S-corporation on W-2?

Payments Made to Subcontractors

       Did my business hire subcontractors in 2014?

       Did I pay them $600 or more in 2014?

       Did I collect Form W-9 from subcontractors?

       Am I planning / required to file Forms 1099-Misc  to report my payments  made to subcontractors?

Sales Tax

       a. Do I need to collect and pay sales taxes?

       b. How often do I need to pay and file related tax returns?    

Use Tax

       a. Have I purchased any business  supplies and equipment outside of   Colorado?

       b. Did I pay sales tax on the purchases in 2014?

Auto Expenses in Business

       a.  Do I keep track on my business miles?

       b. Is my Home-Office the main office for business mileage purposes?

       c. How can I deduct my lease payments on the vehicle I use in business?


 List of Other Business Tax Deductions

            a. Professional Development iTunes, Books, CDs .

            b. Bank Fees/ Merchant Account Fees/ Credit Card Interest for business  charges

            c. Business Association Dues

            d. Parking/ Tolls/ Meters

            e. Postage / Delivery

            f.Professional Fees

            g. Travel Expenses- Note: family airfare and meals are not deductible

                   (unless family members are employees)  

            h. Home Office Deduction/ Utilities/Rent

            i. Medical and Dental Health Insurance for employees(including family  members)

            j. Employee education reimbursements (Note: family members don't qualify)

            k. Office Supplies

            l. Telephone/ Internet/ Fax

            m. Marketing/ Advertising/ Client Gifts

            n. Retirement Account contributions - (Employer Match)

            o. Meals deducted100% for tax purposes

            p. Insurance - business, health, life, disability, supplemental (all separate)

            q. Payroll taxes, sales taxes, use taxes.


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