Start With Current Numbers
Reconcile your books, review year-to-date profit and loss reports, and compare results with your prior projection. Current information makes planning conversations more useful.
- Review income and major expenses.
- Confirm payroll and contractor records are complete.
- Compare estimated payments with projected tax due.
Document Decisions Before Filing
Keep receipts, asset purchases, mileage records, loan statements, and other supporting documents organized. Good records support deductions and make tax preparation smoother.
Plan With Cash Flow In Mind
Tax payments affect operating cash. Reviewing possible liability before year-end gives you time to prepare for payments and consider available options with your tax adviser.
This helped me understand why reviewing books before year-end matters so much.
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