We come to the time of year when year is wrapping up, the weather is turning colder, and we begin to look forward to the upcoming holidays and time with family. We hope this year has been successful for you in business and in life, and that your plans for the future begin to take shape through the slow season.
Before everyone shuts down for the holidays, we wanted to share a few reminders for you as you wrap up business around the office to make sure everything is in order to finish out the year.
- 2019 Bookkeeping – Now is the time to get everything caught up and sorted out with bookkeeping and to work through the piles of receipts while everything is fresh in your mind.
- 2019 1099 Records – Make sure you have received a W9 from each 1099 subcontractor you paid more than $600 to this year.
- Review Accounts Payable and Accounts Receivable – Once your bookkeeping is up-to-date, you also need to review your payables and receivables to ensure you haven’t missed payments to key vendors and that you have been paid everything you are owed. Also, review receivables invoices sent out and make sure that nothing was missed.
- Inventory – Make sure you are making plans for your year-end inventory to make sure your Cost of Goods Sold numbers are accurate year over year, and also to ensure that nothing has been lost or stolen and that everything is where it should be.
- High level Review – We know how it goes; you get so caught up in the day-to-day operation of your farm, ranch, or other business activities that you forget to take a step back and take in the year as a whole. If you’ve spent all the time getting your books up-to-date, you should also take the time to reflect on the work done, where you did well, what you could improve, and to determine whether your operations and business plans are where they need to be.
- 2019 Payroll – If you are operating your own business, hopefully you are taking advantage of the tax savings available through electing the S Corporation tax status for your business. If so, you will want to revisit your reasonable salary computation to ensure you in compliance with IRS guidelines and are paying the minimum required self-employment taxes.
- 2019-2020 Tax Planning – Now that you have reviewed your business as a whole, it is time to evaluate your tax planning and goals to determine whether any adjustments, equipment purchases, retirement contributions, or other changes need to be made before the end of the year. Remember, planning your tax strategy ahead of time is tax avoidance and is encouraged by the IRS, but trying to make these same changes next year when you see the tax bill could be considered tax evasion and could land you in hot water. Take the time to make strategic tax moves now to ensure you make the best decisions for your business.
- 1031 Exchange Planning – Some of you are in the process of selling your properties. Don’t wait until the last minute to plan your 1031 tax-deferred exchange or to begin thinking and researching what properties you would like to transfer your capital gains to.
One of the strengths of American Land Brokers is the depth and breadth of experience that we have on our team, which has only increased with the addition of the services from Mark Sharman CPA PC, another company that Mark founded with a great team of people. Our main goal for both companies is to help our customers be successful in every area of their lives, and finances are no different.
In partnering with Mark Sharman CPA PC, we have been considering how these two businesses can work together and have found that our clients at American Land Brokers are also interested in drawing on the accounting and financial expertise that we have for the many complex financial pieces involved in buying, selling, and managing farms, ranches, and real estate investments, and running profitable business operations. We are bringing the financial and real estate worlds together. In collaboration with Mark Sharman CPA PC, we aim to help facilitate our client’s farm and ranch operations, financials, bookkeeping, payroll, income taxes, 1031 exchange consulting, DST investment consulting, business consulting, and passive investments and holdings financial management.
If you find that you or someone you know is needing assistance with any of the above tasks, please feel free to reach out to our office and let us know how we can best serve you. For those of you who have worked with us before, we would love the opportunity to continue providing tax and accounting services to you. Please reach out and confirm the extent of what these services will entail.
We hope that our combined real estate and accounting skills can be useful to you in driving success for your business, farm, or ranch.
We hope you enjoy the blessings of good time with family and friends this holiday season!
– Mark Sharman