Have you reviewed and analyzed your interim operating results this year?

Every small business needs to review their operations and plan for the future on a continual basis. If you consider doing the following, you will be well on your way to managing your cash flows and minimizing your tax liability.

• Update your books! If you use accounting software packages, post transactions daily so you have up-to-date financial information available for managing cash flows and making financial decisions. If you outsource your accounting, request up-to-date balance sheet, profit and loss, and cash flow statements before making any major decisions.
• Have a face-to-face meeting with your tax professional every three months and before any major business decision. Provide your tax planner with copies of your current financial statements and discuss with them the implications of any major purchases or operational changes projected before the end of the year.
• Create a multi-year capital budget to manage the acquisition or replacement of equipment or other capital assets. Discuss with your tax professional which accelerated depreciation methods are available, and whether to lease or buy.
• Consider funding a retirement plan or providing additional employee benefits.
• Adjust estimated income tax payments based on your bottom line. Although paying estimates that equal the previous year’s tax liability prevents underpayment penalties, overpaying estimates reduces the cash available to use in your business.

Flexible Accounting Services of the Triangle is here to partner with small businesses and their owners. Contact us today for a free consultation and tax review of your business and personal financial situation.