As the calendar creeps toward December 31, small business owners everywhere face a familiar challenge, wrapping up the year while preparing for tax season. Whether you’re based here on Long Island or operating elsewhere, proactive planning can save you hours of work and potentially thousands in taxes.
At Basso & Guida, we’re proud to call Long Island home, but our clients span the region and beyond. No matter where your business is located, one thing holds true: early action is the key to a smooth, stress-free tax season.
1. Review Your Year-to-Date Financials
Start by understanding where your business stands. Your year-to-date profit and loss statement helps identify:
- Unexpected profits or losses
- Missing expenses or income
- Budget variances that could impact your tax liability
We recommend reviewing these financials before the year ends so you can make any necessary adjustments now, not in April.
2. Make the Most of Tax Deductions
If your business has had a profitable year, now may be a smart time to make deductible investments:
- Office equipment or technology upgrades
- Marketing campaigns or subscriptions
- Business vehicle maintenance or purchases
- Employee training and education
For qualifying purchases, you may be able to take advantage of Section 179, allowing you to deduct the full cost of certain assets in the same year they’re purchased.
3. Reconcile Accounts and Clean Up the Books
Don’t underestimate the importance of tidying up your records:
- Match receipts and invoices to bank and credit card transactions
- Identify and resolve any duplicate or miscoded entries
- Ensure all income has been recorded properly
Accurate records now reduce IRS scrutiny and streamline your tax filing later.
4. Prepare Payroll and Contractor Info
If you’ve paid employees or independent contractors, now’s the time to:
- Confirm W-2 and 1099 information
- Review payroll taxes paid to date
- Account for bonuses or final pay periods
If you’re unclear about contractor thresholds or classification, we’re here to help.
5. Don’t Miss Estimated Tax Payments
If you expect to owe more than $1,000 in federal taxes, it’s important to:
- Calculate and pay your final estimated tax by January 15
- Avoid underpayment penalties by catching up now
- Adjust your withholding or payment strategy for next year
This applies whether you’re in Nassau County, Suffolk County, or across state lines.
6. Think Ahead to Next Year
Year-end isn’t just about wrapping things up, it’s also a great time to plan forward:
- Will you be hiring or expanding?
- Are you thinking about changing your business structure?
- Do you have the right systems in place for growth?
A year-end strategy session with Basso & Guida can help you enter the new year with clarity and confidence.
Serving Long Island, and Wherever Business Takes You
While we specialize in helping Long Island small businesses, our clients operate across multiple states and industries. Whether you need help with multi-state filings, industry-specific tax rules, or big-picture planning, we bring personalized service and expert guidance to every engagement.
Let’s Finish the Year Strong, Together
At Basso & Guida, we combine precision in numbers with a passion for service. Our team is ready to help you close out the year with confidence, maximize deductions, and prepare for what’s next.Schedule a free consultation to start your end-of-year tax prep today.
