Are you the type of business owner that meets with your accountant once a year at tax time? If so, you may be missing the opportunity to keep your business up-to-date and on track all year. Here are some mid-year accounting points you will want to talk about when you get together to evaluate things.
Prepping for the Meeting with Your Accountant
As a self-accountability measure, this time is worth its weight in gold. This is your time to ensure that you are caught up bookkeeping entries and that bank statements are all appropriately reconciled. Mid-Year is a great time to conduct an inventory if your business is product-based. Review the results with your accountant so that you can make adjustments on the books as necessary. Check to make sure that you’ve got current W-9’s on file for all contractors, to avoid the end of year hustle for information.
Second Quarter (Q2) or Yearly Financials
Now is an excellent opportunity to look at your financials, big-picture style, and discuss any changes or corrections you want to make in the second half of the year. You miss this opportunity to perform this task if you wait until next March to get together. It’s time to review your Expenses and Accounts Receivable to make sure your profitability targets and projections are accurate. This strategy session is a great way to avoid end-of-year surprises, either way! Ask these questions: Are you tracking as expected for year-end? Are there changes you can put into place now to bring about better results at the end of the fourth quarter? This is the time to evaluate things.
Estimated Tax Payments
It’s essential to understand your tax position before it’s time to pay Uncle Sam. Tax planning is an important reason for hiring an accountant. Don’t miss this opportunity to get up close and personal with your quarterly tax liability.
Talk About the Big Picture with Your Accountant
You should enjoy the type of relationship with your accountant that allows you to discuss significant changes that occur in your life or your business. These events can have a bearing on tax accounting, or business as a whole, and should be shared in your partnership with your accountant. If you’re thinking of making some changes to the business, mid-year is a good time to put things into effect. Let your accountant offer guidance. In fact, it’s a great time to sit down and review your business plan together. A business plan should be a living document, which is to say, it’s subject to review and change. While you’re doing a check-up with your accountant, take some time to make sure that everything in your business plan reflects the expression of your business.
Do You Need Accounting Help?
We hope you find this information useful, and that you’ve given some thought to our recommendations. Our accounting practice is centered on relationships that we have with our clients. We are available at tax time, mid-year, or any time you need advice about mid-year accounting. Contact JStevens Accounting for an appointment if you need additional help.