We made it to the end of 2020!If that isn’t a reason to celebrate, I don’t know what is.This year has been difficult in many ways.You’ve pivoted and became creative with your services and products this year and although it’s been a struggle, you did it!2021 is right around the corner and it’s all due to your hard work and dedication!You should be very proud!
You know what year end means, don’t you?It means closing your books and getting ready for tax season.Typically, January is the busiest month of the year for Yield as we will be burning the midnight oil trying to close out the year and
making sure everything is in order to start 2021 with a bang.
Please keep in mind that our due dates for December financials, 1099s and W2s is January 31, 2021.I understand that some of you want them earlier but to be fair to all of our clients we ask you to respect that deadline.
If you do need 1099s completed and it is not part of your original scope of work, please contact your account manager as soon as possible so we can start preparing for those.Please make sure that you have W9s for any contractors that you have worked with over the past year.This includes ANYONE who worked for you that is an individual or an LLC not filing as an S Corp who have been paid over $600 during the year and who isn’t on the payroll.These should be asked for every time you hire a new vendor.Yield can help gather them but it will save time if you have gotten them prior to January.
A few other tips to help with your tax burden, if you are a cash basis business, try thinking of anything you may need for your company and purchase it by December 31.The more expenses you can get into this year, the better off you will be at tax time.Similarly, if you can hold off invoicing customers until January 1 you can be sure that the Income for those won’t be recorded until 2021.If you were thinking of giving bonuses to your employees, make sure those bonuses are issued before
December 31.Taking the time to prepare for taxes before the end of the year can save you money in the long run!
On behalf of everyone here at Yield Bookkeeping Services, THANK YOU for counting on Yield for your small business bookkeeping services.We love our clients and look forward to serving you for years to come.
Happy Holidays to you and yours and we wish everyone a HAPPY HEALTHY NEW YEAR!!!!!
- Rochelle Dallons, Owner and CEO of Yield Bookkeeping Services
Top 8 Year-End Tax Tips
Whether you are having a good year, rebounding from recent losses, or still struggling to get off the ground, you may be able to save a bundle on your taxes if you make the right moves before the end of the year.
Another thing to consider is the “expected” amount of forgiveness must be booked in 2020 whether or not you receive actual forgiveness as of 12/31/20. Which in essence means that we have to pay tax on it in 2021 no matter what!!!
I would like all of you that are business owners to consider joining our Small Business owners Roundtable group. We meet online via Zoom once a month on the 3rd Thursday of the month from 4-5 pm. In order to join you'll need to register for the next one here: >> REGISTER HERE
