Year-End Checklist

The end of the year is quickly approaching, but don’t let the year-end tasks ruin your holiday cheer! Here is a quick checklist of items to complete so you can successfully wrap up 2011 and prepare for 2012.

ü Get your books in order. If your bookkeeping is not up to date, you cannot get a realistic picture of your business’s performance in 2011. With this not done, you cannot determine any last-minute strategies before year-end.

ü Review your Profit & Loss. Where do you stand for 2011? Did you profit more than you expected? Now would be a great time to make any major purchases before the year’s end to take advantage of depreciation expenses.

ü Prepare for 1099s & W-2s. The final day to mail W-2s to your employees and 1099s to your vendors is January 31, 2011. The last day to file Forms 1096 and 1099 by mail is February 28, 2011 and if filing electronically, March 31, 2011. Don’t wait until the last minute to file! Be sure to verify vendor information and collect W-9s if you have not done so previously. Please remember that the expanded 1099 requirements identified in the 2010 Small Business Jobs Act and health care reform bill were repealed. You must issue Form 1099 to any individual, LLC, or partnership if you paid more than $600 in rent or services during 2011.

ü Year-end bonuses and gift-giving. After reviewing your profit and loss, you can determine whether it would be advantageous to issue bonuses and purchase gifts in 2011 or 2012.

ü Fringe benefits. Take a look at possible benefits to extend to your employees (health and life insurance, transportation subsidies, educational reimbursements, etc). You might be able to take advantage of additional expenses.

ü Don’t forget about your contributions! If you are looking to offset your income, there are plenty of options available. You could consider the Arizona Tax Credits for education and the working poor. By making a contribution to qualifying schools and charities, you can claim a dollar for dollar credit of up to $900 for single/head of household or $1,800 for married filing joint. If you are still looking for a specific organization, you might like to consider Quality Interactive Montessori School or Foothills Academy. Click on this link for the Quality Interactive donation form and this link for the Foothills donation form. Don’t forget about your retirement plan contributions, too!

ü Plan for 2012. Now that you have examined 2011, look forward to 2012. Set goals for the New Year and prepare a plan of action!