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?
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?
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?
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 -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?
a. Do I need to collect and pay sales taxes?
b. How often do I need to pay and file related tax returns?
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
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.