End of the Year Checklist for Small Business Owners

End of the Year Checklist for Small Business OwnersEnd of the Year Checklist for Small Business OwnersEnd of the Year Checklist for Small Business Owners Johnston, PayScale.comAs the year draws to a close, you may be looking forward to holiday parties, jetting off to some warm, exotic locale, or simply enjoying a few days of R R at home.But before you ring in aelendher year, youll need to tie up payroll, organize tax documents, and otherwise ready your small business for the coming months. Thats why we created this checklist of things to do before the end of the year.1.Gather your paperwork. Hopefully youve been keeping records for tax purposes throughout the year, but if not, nows the time to get all your paperwork organized.According to Julian Block, a Larchmont, N.Y.-based tax attorney and author of Tax Tips for Small Businesses, the general rule is that for tax purposes, you should hold onto supporting documents like canceled checks, credit card slips, invoices for equipment pur chased, and receipts for three years.For your 2009 return, the filing deadline welches in 2010, so the deadline for the IRS to start an audit would be April 15, 2013, says Block. However, the IRS has six years to start an audit if youve under-reported your income by more than 25 percent.2.Make an appointment with your tax professional (or use tax software). If you have a simple Schedule C and know what your receipts are, then Block says you may be fine on your own using the same software that a tax preparer would use. But if your return is more complex and you want to consult a professional, then you have a few options, according to Block tax attorneys, CPAs, and enrolled agents.Block says the latter is often your most affordable option. Locate an enrolled agent in your area through the National Association of Enrolled Agents. Another way to save money? Prepare the return yourself and hire an enrolled agent to review it, rather than hiring someone to do the entire return.3.Double-ch eck your payroll and benefits. According to Karen Cunningham, HR Director at AmeriFlex, a benefits administration company that works with small businesses, its cheaper to correct payroll issues in December than it is next year.She says some small businesses forget to include taxable fringe benefits like third-party sick pay or a car provided for personal use. Its compensation, just not in the form of cash, so it should be posted to payroll, she adds.Now is also a good time to make sure youve communicated any changes to benefit plans or retirement options. December is the time of year I go back and run a report to make sure that money really is in employees 401(k) accounts, she says.4.Show appreciation for your employees. Many companies do performance reviewsin December or January, which Cunningham describes as a great time to reflect back on the successes of the employees as well as the opportunities for development.In addition to announcing merit increases or bonuses (if youre able to offer them), Cunningham says its also important to give employee recognition, a gesture that recognizes your employees as people, not just worker bees.If your budget doesnt allow for a holiday party, then consider hosting a potluck or letting employees leave early one afternoon for holiday shopping, she adds.5.Assess your staffing needs for the coming year. In looking ahead to the New Year and planning your budget, consider your business goals and whether youll need to recruit new hiresto achieve those goals. Cunningham says staffing your business in tough economic times may require creativity.For instance, you might bring in contractors for a short-term project or hire people with multiple skill sets. Also, consider hiring someone at a lower level and providing them with the opportunity to grow, adds Cunningham.That requires nurturing and some additional investment from the business owner, but there are a lot of eager people out there who would love to work and would love to le arn new job skills or perfect an existing skill set.