Business client year end planning

With year-end approaching rapidly, I would like to share with you how we should prepare for a successful year end closing.

1. Please save the letter sent from Texas Comptroller Office with XT/RT number on right upper corner and forward it to your CPA when you receive.

2. If business needs to issue 1099 to vendor for year 2020, please provide the name, EFIN/SSN, address, and amount etc. information to you CPA by 01/15/2021.

3. Having a clean book is essential in preparing business tax return. Please make sure business financial records are updated in the software/spreadsheet you are using to track business income and expenses. If you need my help to organize your financials data, please reach out to me for a discussion.

4. If business address is changed, or registered agent or registered agent address is changed, please inform CPA to update state and IRS.

5. It is always suggested that all business bank accounts are reconciled at year end, so you know business cash balance at year end is accurate, and income and expenses are valid and are properly accounted for.

6. If you used personal vehicle for business purpose in 2020, please document business mileage and vehicle related expenses properly with supporting documents. . Please see attached tax return collection sheet – Schedule C single llc tab.

7. If you have been using home office deduction in past years, please document home related expenses. Major categories used in office deductions are insurance, repairs, security system, utilities and services and telephone. Please see attached tax return collection sheet – Schedule C single llc tab.

8. If you have rental income for 2020, please put together rental income and expense summary. Major expenses are including insurance, repairs, cleaning and maintenance, management fee and etc. Please see attached tax return collection sheet - Rental Property tab.

9. If you sold your rental house, please save a copy of purchase statement and sale statement, so we can accurately calculate capital gain from selling your rental house.

10. If your business incurred other transaction that you would like to have a discussion, please reach out to me.

Feel free to reach out to me if you have any questions or concerns.