{"id":17880,"date":"2019-12-26T11:30:48","date_gmt":"2019-12-26T17:30:48","guid":{"rendered":"https:\/\/theboutiquehub.com\/?p=17880"},"modified":"2019-12-30T10:56:34","modified_gmt":"2019-12-30T16:56:34","slug":"5-tasks-to-complete-now-to-prepare-for-tax-season","status":"publish","type":"post","link":"https:\/\/theboutiquehub.com\/blog\/5-tasks-to-complete-now-to-prepare-for-tax-season\/","title":{"rendered":"5 Tasks To Complete NOW to Prepare for Tax Season"},"content":{"rendered":"\n

I know, I know.\u00a0It\u2019s not even January yet, but tax season will come sooner than you think!!\u00a0This article is a strategy guide for tax season for boutique owners.<\/p>\n\n\n\n

Yet, as a boutique retail or wholesale business, there are a few tax-saving tasks I\u2019d like you to consider as you ring in the new year.  <\/p>\n\n\n\n

So here are 5 retail-specific tasks you should complete NOW to prepare for tax season:<\/p>\n\n\n\n

1. Review your entity filing status<\/strong><\/p>\n\n\n\n

Your entity filing status can affect how much you owe in taxes each year.<\/p>\n\n\n\n

For example, if your business is an LLC, and you have paid yourself more than $36,000, you may have an opportunity to save a significant amount in taxes in 2020 by filing an S-Corporation Election with the IRS.  And, planning ahead is crucial. To take advantage of planning ahead is crucial.  If you are currently an LLC, you must make an S-Corp. For S Corp tax treatment to be in effect for 2020, existing businesses must meet the IRS deadline of March 16, 2020.<\/p>\n\n\n\n

And, if you are a Sole Proprietor and wanting to incorporate, it makes the most sense to complete this election while filing your 2019 return, if not sooner.  <\/p>\n\n\n\n

2. Donate dead inventory<\/strong><\/p>\n\n\n\n

If you have aged or dead inventory and you have exhausted all opportunities to sell it, then donate it before year-end.  This donation allows us to write off the cost of the items as a business expense. <\/p>\n\n\n\n

\"Prepare
Tasks To Complete NOW to Prepare for Tax Season<\/figcaption><\/figure><\/div>\n\n\n\n

3. Complete your physical inventory count<\/strong><\/p>\n\n\n\n

Performing a physical inventory count is important for several reasons.  First, it allows us to deduct the cost of items lost to theft or shrinkage.  Second, it allows us to tidy up our Point of Sale system and inventory asset value reporting for 2020.  Lastly, it is our checks-n-balances on the inventory asset value we have on hand, which can be used to begin your 2020 open-to-buy strategy.<\/p>\n\n\n\n

4. Look back to last year\u2019s return<\/strong><\/p>\n\n\n\n

Look back at your tax return for 2018 and think about areas that were problematic or extra stressful. Then think about how you can alleviate that stress for next year.  <\/p>\n\n\n\n

5. Add caution when being given general tax advice <\/strong><\/p>\n\n\n\n

General tax advice is just that \u2026 general. It is essential that your tax accountant fully understands your business.  If he\/she does not, they risk filing an inaccurate tax return because they did not ask the right questions, or didn\u2019t understand the context of your response.  And, they absolutely have to understand how the money flows through your business to give you the best advantage when it comes to tax liability.  <\/strong><\/p>\n\n\n\n

Let\u2019s not let tax season creep up on us.  Adding these 5 tasks to your Boutique Boss Planner<\/a>, and committing to their completion, is the first step towards successfully closing out your 2019 year.<\/p>\n\n\n\n

And thankfully, I am here to guide you and tell you everything you need to know about preparing for the 2019 tax season.  <\/p>\n\n\n\n

Cheers to Your Beautiful Success!<\/p>\n\n\n\n

Article by Christyne Gray | She Profits Now<\/a><\/em><\/strong><\/p>\n\n\n\n

Are you a Boutique Hub member and want to learn even more? Join Christyne and Director of Education and Partnerships Sara Burks on Monday, December 30th at 10am CST for a Q&A all about Tax Season in our Member’s Only Facebook Group! <\/strong><\/p>\n\n\n\n


<\/p>\n","protected":false},"excerpt":{"rendered":"

I know, I know.\u00a0It\u2019s not even January yet, but tax season will come sooner than you think!!\u00a0This article is a strategy guide for tax season for boutique owners. 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