A few years ago, we had a client who had a pretty good year selling shoes. They rocked along all year making good money and then spending most of it. They didn’t want to pay for monthly financial statements so they tried to summarize all of their income and expenses at year-end so that we could prepare an S Corporation tax return.
Well, because they didn’t have any accounting or financial statements, we couldn’t provide tax planning for them. It turned out, that they owed $36,000 to the IRS and had to enter into an installment agreement to begin paying the balance off.
Every business needs to have accurate and timely financial statements so they know how they’re doing and so they can plan for the future. After year-end, there’s not much you can do to reduce your tax bill.
Our advice: Stay on top of your accounting and have financial statements prepared monthly so you know how your business is doing. Communicate with your CPA and have some tax planning done before the end of the year to find ways to reduce your taxes.
Let us help you!
Allen & Company, PC - a CPA firm serving Kennesaw, Marietta, Acworth, Woodstock and north Atlanta. Providing accounting, financial statement audit, taxation, and advisory services for individuals and businesses. Extensive experience working with franchised restaurants and other franchised businesses.