Being Thankful! Tips for End of Year Taxes with Richard Lindsey & Things to Do This Week!
Thanksgiving is an opportunity to connect to family and friends over great food, football and fun. I like the idea of "Friendsgiving" for those who do not live near their blood relatives. Why not share your turkey feast with good companions?
Entertaining is very rewarding and can cement the bonds you have with others. If you don't have time to cook there are plenty of restaurants and grocery stores ready to "save the day" for you! I was tempted to book a reservation however I KNOW how much we love turkey leftovers. (turkey gumbo is in my future) We decided to create a delicious menu and "live it up" at home! I'll share the details of what we'll be cooking at the end of this blog with recipe links!
One of the blessings of living along the Gulf Coast is the abundance of fresh produce. Our backyard has several fruit trees loaded with gems to enjoy this fall. This grapefruit tree has a mind of its own. Some years, it is loaded down with fruit and other seasons it bears a minimum crop. I was excited to see all of the blossoms earlier this year. I realized it would be a productive fall!
Marcello, our Standard Poodle, searches for fallen fruit to play with. He thinks this tree is a juicy "ball" provider planted just for him. If I would allow it, he would gather his treasures and bring them inside to his kennel. Oh what a sticky mess that would be!
He certainly teaches me to stop and enjoy all of the simple things in life. I am thankful for this gentle beast.
Tax Tips from Richard Lindsey
Smart Business (Early) Year-End Moves for 2022
The close of the year is a natural time to take stock of all things, and one of them should be your business. Your money – as well as your plans for it – should be top of the list.
From your people to your payroll taxes, budgets to your bank: Though financial assessment can seem to be a big basket, with proper planning you can tick off one item at a time and set yourself up for 2023.
Let’s get started.
Give a once-over to your key financial documents, such as your balance sheet (assets, liabilities, and shareholder equity), income statement/P&L, and cash flow statement. What to look for:
Balance sheet: Are your receivables and debts in line with total assets? Higher inventories can reflect lower sales, and double-check for contingent liabilities and their due-dates.
Income statement: Unexplained drops in sales and marketing expenditures: Do they correlate? If not, look back to see what went wrong. Did operating costs ever rise occasionally without a corresponding rise in revenue? Again, what happened?
Cash flow statement: Operating activities should be your biggest category. Too many big but infrequent payments from just a few clients? Delayed receivables?
Prepare a budget for 2023. Go over your A/R past-dues and look ahead to factor in upcoming capital improvements in addition to regular operating expenses. Check your inventory and pre-pay if possible for items and services such as insurance, professional dues, or rent that you’ll need next year.
Use last year’s budget as a guide, but not as an ironclad roadmap: Every year is different. With inflation and ongoing supply-chain messes likely into 2023, it pays to plan and now.
Aside from suppliers, two of the biggest outside businesses impacting your company are your bank and your insurer.
Banking: Simply, are you getting all the services you need, such as employee company credit cards? Is your access to your bank sufficient (either through in-person branches or online)? Are fees too high? Are they meeting all your credit needs (including for Small Business Administration loans)? Can you get better support or perks elsewhere?
Insurance: Make sure your policy is renewed and up to date. Looking ahead to 2023 developments that you expect for your small business, do you have coverage for those changes? Need any policy riders? See if bundling coverage will save on premiums.
Aside from making sure everybody checks the new calendar to slot vacations ASAP, perks and taxes are two big details to check before the new year.
Retirement plans. Review reporting requirements based on the size of your plan and its participant numbers. Some businesses give end-of-year bonuses or retirement contributions to employees, which can come with a tax break.
If you don’t have a retirement plan for workers, look at options for creating one in 2023 – even small companies (100 or fewer employees) can easily set up a SIMPLE (Savings Incentive Match PLan for Employees) IRA. We can help you do this.
Review payroll. Double check with us if you have questions in this area, which frequently changes. Starting next year, for instance, the base annual wage for computing Social Security tax will increase to 160,200 dollars, up from 2022. Did you get any pandemic relief for payroll in the past? Make sure that such credits and loans are wrapped up heading into 2023.
Tax documents. It’s never too early. Start with the financials we mentioned before and check with us about having to fill out any additional forms: Examples might include W-2s or W-3s; quarterly, state, and federal returns; or IRS Form 1099-NEC – this year, the latter kicks in for just $600 in payments to most independent contractors. Assemble your paperwork for deductions; we’d like to look at it sooner rather than later to get you all the money back that we can.
Debt, income, and expenses. Generally, try to rattle debtors’ cages and get your outstanding A/R by the end of the year – cash in hand always makes bookkeeping easier. There may be times when deferring income into the new year makes tax sense. Ditto for deductible expenses: Taking a major business deduction (for capital equipment, say) can make a big difference for your company’s taxes in one year but a huge difference the next. Check with us if you need help with timing.
Marketing plan. Now’s the time to think about those new markets and niches that you’ve wanted to target, and about the marketing needed to do it. What kind of business do you want to be doing this time next year? Set your budget and start considering what media will get your message across best and how much it’ll cost you.
Now, figuring out where to start on all of this or even what’s most important can be the really difficult part of end-of-year moves. THAT is something I am more than happy to help get you started on.
Guiding one step at a time,
What's New on YouTube?
On Sunday, November 20th, the third edition of my Soup for the Soul video series will be released. This quick and easy Black Bean Soup is a favorite in our home. It is hearty enough to stand alone as a meal. You can serve it with tacos, enchiladas or other Mexican fare. Click here to watch on Sunday morning!
Coming soon! I'll be doing a Countdown to the Holidays featuring decadent desserts and surprise guests! Be sure to go subscribe to my channel, click here, and stay tuned!
Last Minute Holiday Grooming Appointments at Apollo's Paws!
The Boss Dogs are going to see Rebecca next week for their monthly "shower & shave". She has a few appointments available for your fur kids before she breaks for the holiday.
Visit her website at www.apollospaws.com to schedule your pet's spa day. She grooms dogs, cats, birds, exotics and more! In fact, the last time I was at her shop a beautiful rabbit was there for its first grooming.
While you are there be sure to pick up shampoo, cologne and grooming tools to keep your pet looking great!
6001 E Grelot Road Mobile, Al 36609 251-725-6178
Holiday hours for Thanksgiving week are Monday - Wednesday 7:30AM - 5:30PM. Closed on Thanksgiving Day, Friday & Saturday. Opening on Tuesday at 7:30AM.
Things to Do on the Gulf Coast!
I grabbed this off my refrigerator and wanted to share it with you! There are tons of things happening now until the end of the year along the Alabama Gulf Coast. Visit www.mobileparksandrec.org.
If you are across the Bay, Fairhope's downtown looks like a Hallmark Movie set with lights and decorations. I definitely suggest you venture there and enjoy this small town's charm.
Also, Bellingrath's Magic Christmas Lights starts the day after Thanksgiving! Visit www.bellingrath.org for tickets and time
New Service from Handy Guys Moving Service!
Look at this new benefit that Handy Guys Moving Service is offering just in time for the holidays! Don't break your back trying to rearrange furniture to make room for your Christmas decorations! Call on the professionals at Handy Guys today at 251-366-4897!
Houston Horne and the team at Handy Guys are ready to give you a helping hand. If you are planning to relocate soon, let them give you a FREE quote. These trained & certified professionals will take the stress out of local and long distant moves.
Sometimes the best gift you can give yourself is support! Do yourself a favor and contact them.
Check out Handy Guys by clicking here or visiting their website at www.handyguysmoving.com.
The thankful heart opens our eyes to a multitude of blessings that continually surround us. ~ James E Faust
If you know of a local business looking for assistance with marketing, please give them my contact information. I absolutely love helping others reach their goals. (Just a shameless plug)!
Have a wonderful Thanksgiving week! ~ Charlsie
Thanksgiving Menu Ideas!
Spiral Sliced Ham
Southern Style Green Beans
Annie Rolls (Yeast Rolls)
Remember to have fun in the kitchen and cook your favorites! I have linked some tried and true recipes if you are looking for something new!