Quarterly taxes – 7 questions to avoid filing mistakes.

by | Aug 27, 2021

Quarterly taxes – 7 questions to avoid filing mistakes.

Third quarter taxes are due September 15th. Before you file, it’s important to ask yourself what changes have occurred in your business and personal life. While some changes are bigger than others, even small changes can affect your taxes. Talking to us about these ahead of time can help minimize missteps that could potentially cost you.

What questions should you ask? Here are the most crucial:

Is your Year-To-Date Income dramatically higher or lower than in 2020?

We need to know about any large swings in your income from 2020-this will effect the amount you need to pay in.

Are you thinking about signing a new agreement or contract?

We need to know about any large contractual obligations that you are entering into. Contracts can carry special accounting and tax treatments that need consideration and depend on the terms of the contract. Our expertise prior to signing is the best option and we will help you determine the financial impacts before signing. If you have already signed on the dotted line, let us know as soon as possible. It’s important to be ahead of any potential impacts for you and/or your business.

Do you want to make a major purchase?

You should inform us of any large capital expenditures for building upgrades, equipment, or other necessary items. We can help you make necessary adjustments to your bookkeeping resulting from the purchase. On the flip side, we should also be informed if you’ve sold off a piece of your business.

Are you selling your business?

Cashing out? We should be one of the first to know. We can help navigate the financial issues related to selling your business.

Are you going out of business?

Closing your doors? We should also be one of the first to know. We can help navigate the financial issues related to shutting down and assist with closing out your books.

Are you moving?

A change of address can affect your taxes, especially if you’ve moved (or are planning to move) to a new county or state. Be sure to provide us with your new address and phone number as soon as it’s available. We will make sure you aware of tax laws in your new zip code. Since some post offices don’t forward mail from the government, we will make sure your address is up-to-date with important organizations such as the IRS.

Has something changed in your personal life?

For better or worse, your business and personal life are intertwined as a small business owner. Let us know of any major changes in your life outside of work; including marriage, divorce, new babies, and/or change of residence.

Please reach me if any of these change have, or are likely, to occur– I’d be happy to help you navigate through the process!