Businesses should ensure accounting compliance before new year
December 26, 2012
When it comes to accounting management
, there are many responsibilities that businesses are tasked with. With the approaching new year, owners may want to take the time now to organize and file all of the necessary paperwork that is required to maintain compliance with federal and state regulations. Tax season will quickly be here, and companies will be wondering where the time went and why they did not manage their essential materials sooner. While wrapping up 2012 operations, owners will need to focus on getting together all of the needed documents for their taxes come April. Business accounting software
can help with this process by simplifying firms' accounting and tax needs.Tips for getting tax materials together
Hispanic Business offers several suggestions for small and midsize business owners who are looking for end-of-year help with their tax preparation for the coming year. One of the most important tax processes involves payroll, as companies are responsible for accurately reporting wages and adhering to the respective tax regulations. To facilitate the process, the source recommends that firms verify all tax identification numbers to ensure they are accurate and up-to-date.
Additionally, businesses will need to work with employees to confirm that all W-2 and 1099 data is correct. This should be done at the end of the year so that changes can be made if there are any errors, the source notes. Companies will also need to be up-to-date on which information is required to be filed with state and federal governments. Seeking the help of accounting and tax professionals can help with this step, although it is ultimately the responsibility of owners to accurately file taxes.Benefits for year-end preparation
Although the fiscal cliff negotiations are still ongoing, which is causing some owners to be uncertain of the coming year, there are steps that businesses will want to take now to benefit them in the new year. Accounting Today writes that companies can consider moving up employee bonuses to take advantage of the current lower tax rates, should they increase in 2013. In addition, any planned purchases, such as those for equipment or new technology, should be made now, asserts the source. Small businesses can still take advantage of the Section 179 deduction, which could drastically decrease in the coming year if negotiations are not reached.