The start of a new year is an exciting period for SMBs. It’s a time for planning, setting goals, and gearing up for the year ahead. But it’s also important for accounting and reviewing your financial position.
We’re going to cover some of the basic items your list should have, starting with one of the most important things that you can’t miss: tax deadlines.
To start 2024 off on the right foot, use this accounting checklist to stay on track.
SMB Tax Deadlines for January
Some of the most critical accounting tasks you’ll need to focus on in January are tax-related. There are several tax deadlines that you should be aware of and forms that must be completed and filed by the end of the month.
Estimated Tax Payments – January 16, 2024
Estimated tax payments for the final quarter of the 2023 tax year are due on January 16, 2024. Make sure that you have paid the amount listed on your payment voucher by the due date.
W-2s and W-3s – January 31, 2024
If you have employees, all W-2s must be sent to them no later than January 31. Even if an employee is no longer working for you, they must be sent a W-2 if their wages totaled $600 or more in 2023.
Make sure that you create multiple copies of W-2s so that they can be provided to:
- The IRS
- The employee
- Your own business records
Form W-3 should list the number of W-2s that you distributed, along with the total numbers withheld and paid during the year. Don’t forget to submit Form W-3 along with the copies of W-2s.
1099-MISC and 1099-NEC – January 31, 2024
Form 1099-MISC is used in the reporting of payments that are not subject to self-employment tax – things like rent and attorney fees.
Form 1099-NEC is the Internal Revenue Service (IRS) form used by businesses to report payments made to independent contractors, freelancers, sole proprietors, and self-employed individuals.
Employment Taxes – Varies
Employment taxes are looming, and you’ll need to review the date of your own business deadlines. You can find your tax schedule on Form 941. The IRS will require you to meet deposit due dates, and it’s up to you to meet these deadlines.
If you prefer not to take on this burden, you can work with a small business accountant.
Your accountant will work with you to understand the deadlines, reporting schedule, and proper deposit amounts.
Payroll Compliance Matters
All of these forms have deadlines, and it’s essential not to overlook or ignore them. The IRS has very stringent guidelines for payment structures and deadlines, and failing to adhere to these guidelines could result in fees and penalties.
It’s easy to lose track of paperwork, especially at the start of the new year when things may be chaotic. However, it’s important to make sure these accounting tasks are at the top of your checklist and are taken care of first before you move on to other, more constructive tasks.
Don’t wait until the last minute – tackle these documents first thing after the new year break.
Revisit Your Cash Position
You can’t manage your cash flow properly if you don’t know your current cash position. One of the most crucial items on your accounting checklist to start the year must be checking your cash position.
You’ll want to account for:
- Cash payments received
- Cash payments sent
- Cash balances
- Etc.
Review your records of inflows and outflows so that you know the financial health of your company going into the year. If your cash position is low or in the negative, it may be time to consider outside funding to keep your operations running smoothly.
Your accounting checklist will help your business start a new year on the right foot. You’ll be confident that you’ll meet tax deadlines, have all of your forms in order, and you have the inventory and cash to keep orders flowing.
If you need help going through this accounting checklist or want to learn how we can help you with your accounting needs, schedule a consultation now!
