In November and December, we spend a lot of time in our personal lives making lists and checking them twice. This is also the time of year when accounting departments start gearing up for tax preparation. The best way to ensure you dot every “i” and cross every “t” in order to stay compliant is to use a checklist of the information you need to prepare a complete return and avoid triggering the company for an audit.
There are several legal nuances in the ways in which LLCs and S-corps file returns, but this is the starting point you’ll need to be sure you have the right data ready to go for the end of the year.
Estimated Tax Payments:
- Receipts from federal and state payments with total amounts and dates
Payroll (W2, 1099):
- Be sure HR has sent out a request for all employees to update any changes information so that records are accurate for:
- Full legal name
- Current address
- Social security number
- For 1099:
- Amounts paid out over $600
- SSN or TIN
- For S-Corp – proof of reasonable wage paid to shareholders (must be paid by December 31)
Income:
- Gross receipts
- Returns and allowances
- Credit card charges
- Other income
Sales Costs:
- Purchases
- Itemized inventory
- Operational salaries
- Contract labor
- Vehicle expenses
- Equipment rental
- Maintenance equipment
- Other operational expenses
Expenses:
- Accounting
- Advertising
- Bad debts
- Bank charges
- Computer expenses
- Administrative contract labor
- Commissions
- Credit card fees
- Employee benefits
- Fines and penalties paid
- Freight
- Postage
- Business general liability insurance
- Business workman’s comp insurance
- Health insurance
- Vehicle insurance
- Interest
- Investments
- Legal fees
- Lodging
- Miscellaneous expenses
- Pension and profit sharing
- Ensure employee contributions have been transmitted to administrator
- Company contributions can be made until March 15
- Rent/Lease
Taxes and Licenses
- Business license fees
- Real estate taxes
- Payroll taxes
- Sales tax
Miscellaneous
- Year-end bank statements to verify cash balance
- Accounts receivable/unpaid invoices currently outstanding (aging report)
- Accounts payable/unpaid liabilities (bills, loans, leases, equipment financing)
- All vehicle information on company cars (make, model, mileage)
- For S-corp: Ensure depreciated vehicles are titles in the business name
- P&L Statement
Typically, LLC taxes more straightforward than S-corp taxes, because of the distinct tax benefits afforded to corporations. However, regardless of the structure of the organization, it takes an expert to ensure an accurate and compliant return that takes advantage of every available benefit.
If your company is seeking top accounting and finance talent, or you want to improve your accounting and finance hiring processes to ensure you’re matched with the best and brightest who will keep you compliant and efficient, contact the expert A&F recruiters at Contemporary Staffing Solutions today.