Dec 29, 2017
The year has almost come to an end. Just a handful of things left to do. The term “Burning The Midnight Oil” comes to mind. Some things need to be done and date stamped on or before December 31 of each year or it does not count for the current year.
Payroll – Did you take any personal
payroll (S-Corp) If not, it may impact your personal
deductions.
IRA – 401K Making those final payments before midnight on December
31. (Do not wait until 11:59 PM)
Some plans allow you to make payments until April 15th (double
check the dates– do not assume)
End of the year income -
Getting one last customer invoice out and receiving the
payment
Last minute purchases to count on 2017 taxes (expenses or larger
item which qualifies for depreciation)
January 1 – is the time that
the reset button on company financials, payroll tax
threshold, expenses, and income start over at Zero. Do you have
deductibles that reset or annual caps?
Tax Accountants will be
demand explaining how the new changes will impact of and every one
of us.
Many changes are coming at the Federal level with the new tax plan
passes. Reading the highlights of the new tax plan, we can expect
the IRS to be busy in the next few weeks rolling out the new tax
rates and how it is applied to the Federal Withholding on your
paychecks. Within the pages of the various tax codes that might
cause changes in the 2017 tax software. Congress picks whether any
tax increase or decrease impacts yesterday, today or tomorrow. Tax
accountants keep on top of changes.
IRS Statement on 2018 Filing Season Start Date. The IRS has
released a statement regarding the first official day to file taxes
in 2018. “The IRS Statement on 2018 Filing Season Start Date is
basically that there is still no official date. Due to all of the
current legislature going on regarding tax laws, there is no
official start date for 2017 Tax Season.”
Most common State changes are
tied to minimum wage rates and employee
benefits (example PTO, Sick Pay, Vacation Pay,
other employee benefits). Individual cities can be different than
the rest of the state (Seattle). Recommend using a 3rd Party
Payroll Service with an HR Component to keep in
compliance.
Hint For a Pre-New Year’s Day
Activity
This is one of the Not So Fun aspects of running a business. You
Are The Boss! Buck Stops Here! In addition to doing all the Fun
Stuff (meeting your clients). Employees in general (maybe not
yours) will start asking for their W2 on January 1st (or before)
thinking that they can immediately file.
Some employees might be
planning to use a service to file their tax return and receive a
“tax refund loan” so they will have their
money instantly. To avoid hearing employees ask over and over – it
will be less time consuming to send out the W-2 forms sooner rather
than later.
Create W-2 and Pass Them Out
As Soon As Possible – Remember To Keep A Copy
W-2’s and 1099’s have a deadline of January 31st to be mailed out
to your employees and 1099 contractors. Be proactive and send out
W-9’s now; thereby asking for Federal Tax ID or Social Security
Number now. IRS Form W-9 https://www.irs.gov/pub/irs-pdf/fw9.pdf.
Check the IRS site for 2018 W4.
Some employees will move and
forget to notify you of their new address
change until after they have made the
appointment to see their Tax Accountant and discovered their W-2
has not arrived.
Think About Your
Company Tax Filing Status
I recommend changing from a Sole Prop to an S-Corp. Setting up an
S-Corp is done with the Secretary of State in your state. Note, a
few states only accept forms from a third party service.
If you are currently an LLC –
my recommendation is still to become an
S-Corp. If not, change your tax filing status
to be treated as an S-Corp. The form needed from the IRS is a Form
2553. https://www.irs.gov/pub/irs-pdf/f2553.pdf
Unlike many State Agencies,
the IRS does not charge to file their
forms. You are asking the IRS to change how
your company is being treated. Why is this important? Because the
IRS will only accept the form for the current year in January –
February (pushing the deadline to March 15th is risky) otherwise
the approval will be for the next year (meaning starting in January
2019) instead of January 2018.
Quick Tip: Late Penalties to
State and Federal Government Agencies are
increasing, and they are looking back at
filing dates of past returns for additional fees. Very
expensive to borrow money from the government. In case you
need it; it never hurts to ask for a payment plan.
Rule of Thumb When Asking: Be
Nice, Be Polite, Ask for a payment plan to be
extended for as long as possible and with payments as low as
possible. Sometimes no matter how you ask – the person you are
talking is not helpful, but usually, if it is within the rules they
will. Cash Flow - Every little bit helps!
For many contractors the last
few years has been a challenge just to stay in
business. For Construction Contractors – the
margins are so thin trying that trying to be competitive and to be
profitable at the same time, and contractors have felt like they
are acting as a Non-Profit without any of the tax
benefits.
Every business has challenges; it comes with being in business.
Think Positive – Tomorrow will be better.
Yes – I know you also have
a list of Business Resolutions.
Construction Accounting and
Bookkeeping issues will not go away all by
themselves.
Check out FastEasyAccountingStore.com or Chat with me about a Customized Proposal.
Now is the perfect time to clean up your Accounting for
2017, make changes for a better 2018.
New Year’s Resolution
– One tiny change in your process that will
help you grow your Construction Contracting Company.
We are ready to help “A Little or A Lot” with any of those
accounting issues when you are ready.
Tomorrow is a new day, and once you, me, we have rested, the
challenges will be easier to manage.
Again, Best Wishes To
Everyone.
Have a Very Happy New Year
Welcome 2018
Helping Contractors around the world is one of the reasons we added
the FastEasyAccountingStore.com
Follow our blogs, listen to Contractor Success M.A.P. Podcast. We Appreciate Our
Visitors, Listeners, and Subscribers. – Thank You!!
Please feel free to download all the Free
Forms and Resources that you find useful for your business.
We are here to Help “A Little or A Lot” depending on your
needs.
About The Author:
https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
Thank you very much, and I hope you understand we do care about
you and all contractors regardless of whether or not you ever hire
our services.
Bye for now until our next episode here on the Contractors Success
MAP Podcast.
Enjoy your day.
Sharie
About The Author:
https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
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