In order to avoid disappointment at tax time, one needs to pay close attention to tax issues before year-end. Here are some issues that need to be considered prior to or at year-end:
-Pay all business expenses by year-end even if they're not due till after year-end*;
-Purchase business assets such as needed office equipment;
-Pay all estimated State taxes by year-end*;
-Create and contribute to company-sponsored pension plan;
-Compile a list of business expenses for the year;
-Complete a mileage log to document business transportation expenses;
-Perform a physical count of inventory at cost as of the last day of tax year;
-Defer collection of accounts receivable until after year-end to reduce taxable income for the year*;
-Verify Accounts Receivable and Accounts
Payable balances for accuracy as of last business day of tax year.
* For Cash Basis Taxpayers
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