Year-End Business Planning
How did we get to September already??? There are tons of things to consider as we approach year end.
Are you happy with your accounting software? Do we need to look at changing? This is a big project and it’s not something you want to leave until the last minute. As I mentioned in a previous email, I’m working with other companies to evaluate their products, but this isn’t something that’s quick or easy. Intuit has a strangle-hold on the U.S. market and evaluating other software is an uphill battle.
Are you happy with your payroll software? Do we need to look at changing? Again, this is a big project and one that I whole-heartedly recommend waiting until the end of a year to change unless it’s some dire circumstance. But if you want to change, we can look at options and get you ready to run your for payroll in January under the new system. Some reasons for change are shorter direct deposit times, availability of employee benefit administration, cost, etc. Whatever your pain point, we may be able to find a better solution for you.
Owner’s Health Insurance - this is an oldie but a goodie, but I need your help.
Shareholders who own more than 2% of an S Corp can get beneficial treatment on their health insurance premiums that are either paid by the S Corp (best practice) or that the S Corp reimburses the owner for.
If you’re having your S Corp pay your insurance, we should be able to see that on the books.
If you’re having your S Corp reimburse you for premiums, make sure we know that and where you’re recording premiums.
If you’re personally paying for your health insurance and the S Corp isn’t reimbursing you, let’s get that remedied before year-end.
In order to take advantage of this tax break, 2% Shareholders must be providing insurance that would not otherwise be available elsewhere.
For instance, my S Corp pays for my BCBS. Bas is on Medicare. Bas can’t cover me on his Medicare policy. I’m good to deduct because I have to get my own insurance; no other policy is available to me.
If you’re married to someone who could add you to their policy, you are NOT eligible for this treatment. It doesn’t matter that you’re not taking advantage of it. You have access to it and that’s the test here.
This can be for self-only or family coverage. Again, the only caveat is that it’s the only insurance available.
If your spouse could not cover you (i.e. their employer only offers insurance for employee coverage, not family coverage), you’re eligible for this deduction for you coverage and your dependents’ coverage if they’re not eligible for coverage anywhere else.
How sure are you of your books and are you ready for taxes? If you’re not sure or if you think you may want to take advantage of some possible tax strategies, reach out now. I’ll be working on these projects in October after the last tax deadline (10/15/25) and you’ll still have time to implement anything we determine will be beneficial to you.
Keep in mind that at year end, we’ll need to tie down outstanding balances:
Notes payable
Bank Balances
Inventory
The list can go on but you get the idea. it’s not enough to have a “set of books”, those books need to be right. We want to get you every deduction that we can and that starts with knowing that we have a clean balance sheet - because a balance sheet should show your real balances!
Is it time to look at benefits packages for your employees? Now is the time to look at health insurance benefits, retirement benefits, education benefits, etc. These are definitely things you can’t just offer “on the fly” the last week of December or the first week of January. It’s something to plan for now.
I’m sure there are other things. I’m sure each of you are different. The only way to investigate your particular tax opportunities for your particular business is to work together. Just reach out. I’ll be happy to help.