Is your business “tax-ready”? For Vermont’s small business owners, the arrival of 2023 means that it’s time to prepare your 2022 year-end items for your tax preparer. To make the process as easy as possible, Carol Feliciano, VtSBDC consultant and owner of 802 Books & Taxes, created a user-friendly checklist of everything you will need. The checklist has been so helpful for our clients that we are sharing it again this year.
Sergio Alvares, VtSBDC’s Statewide Advisor/Strategic Projects, shares advice on why accurate financial record keeping is so important to your business:
- The past informs the future: proper past financial records can inform future financial business decisions with a much higher degree of reliability. With proper financials, future planning becomes not only possible, but a lot less prone to errors.
Your financial records become the biography of your business. At some point, these records may be used for loan requests or for a potential business buyer.
Sergio adds, “Understanding your financials is like having a good friend who always tells you the truth. It might make you grumpy, and you don’t necessarily want to hear It, but the advice is helpful in the long run.”
As the business owner you can use the above checklist to:
- Review your own financial statements
- Provide to your bookkeeper as a year-end guide to ensure the books are tax ready
- Use the checklist to review your bookkeeper’s performance and workflows
- Identify complex issues to bring up with your tax preparer or accountant
- Discuss business strategies and operations questions with your VtSBDC advisor
We hope this resource will enable you to be empowered to understand your business’ financial picture, assess your profitability, and know the important questions to ask.
Looking for more? Check out our resources page or request advising from a regional advisor!
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