Preparing for Year-End: Tax Prep Tips for Small Businesses in Michigan

Numerico’s Guide to Effective Year-End Tax Preparation

As a small business owner, you should know tax deadlines so you can meet them without scrambling.

The year’s end means you might tie up other financial loose ends to enjoy a clean start to the New Year. Numerico outlined some tips for small businesses to help you prepare for the impending tax season. Our CPA firm in Michigan specializes in assisting business owners like you in organizing your documents and meeting deadlines without stress.

Key Tax Preparation Tasks for Michigan Small Businesses

Our tax accountant for small businesses suggests that you collect and organize those tax documents well in advance. Make sure you have:

• Expense records that show the year’s expenditures
• Income statements comparing expenses versus profits
• Financial statements to show how well your business performed and the assets it gained or sold
• Applicable tax forms to fill out as you go

You should also keep your payroll or contractor records on hand throughout the process. Consistent and precise payroll monitoring year-round prevents future discrepancies when you file business taxes. Our Michigan business CPA suggests automating payments, updating employee information as needed, and regularly auditing your payroll data to ensure your business withholds the appropriate amount of taxes.

Maximizing Deductions to Reduce Tax Liability

Your accountant helps you understand small business tax deductions that save money. Some deductions include:

• Insurance policies or provisions for employees to cover personal health or property repairs
• Business supply purchases like subscriptions, electronic purchases, and materials like paper and pens
• Home office usage for those who run their businesses from their residences
• Travel expenses to cover gas, company vehicle repairs, and insurance coverage

Our other tips for small businesses looking to save money this tax season is to look into tax credits. For example, the Michigan corporate income tax rules enable you to use a tax credit called the small business alternative credit.

Staying Updated on Recent Tax Law Changes

The Internal Revenue Service will allow small business owners to fix payroll and employee mistakes while taking on a bigger role in protecting their staff members’ identities. Keeping up with these changes, how they affect your business, and whether they’ll influence your filing process is essential to saving money, submitting accurate tax filings, and meeting your responsibilities.

You may not have time to monitor and manage such frequent changes. But your small business tax accountant at Numerico does. They will help you comply and keep up with Michigan state and federal regulations.

Creating a Year-End Tax Checklist 

What might you need to bring for your tax filing consultation? Tackling the following tax-season to-dos:

• Define your business type. Is your business an LLC, S corporation, or something else?
• Brush up on state tax laws. Get a general understanding of Michigan’s business tax laws.
• Think about federal tax regulations. It also helps to know what the federal government requires.
• Gather and organize payroll information. Ensure employee and contractor information is accurate and well-documented.
• Collect your receipts. If you donated or purchased assets through your business, you might qualify for deductibles.
• Make copies of all documents. Save each year’s tax information in secure places.
• Schedule your appointment. You can work one-on-one with a CPA or use our digital tools for optimal accuracy.

Taking the Next Steps With Numerico 

Looking for even more tax tips for small businesses like yours? Link up with a Numerico accountant in Livonia, Michigan. Our team knows the ins and outs of state and federal filing changes and ways to save business owners money each year.

Want your success story to reach beyond tax season? Our accountants can help with that, too! You’ll enjoy year-round financial guidance and support when you work with us. Call (734) 359-7811 to connect with one of our representatives and learn more. We can’t wait to add you to a growing list of satisfied, successful clients.