January To-Do List for Small Businesses

Small business to do list for January

The holiday season always ends with a bittersweet feeling. Thankfulness for the previous year and the memories we've built keep us in a festive mood while the calendar starts pressing us to think about the future and the inevitable: tax season deadlines. What are these deadlines and how can you meet them without feeling overwhelmed? At Avid Accounting, we're firm believers that organization, communication and teamwork all work towards helping this time of year pass with minimal stress, which is why we've listed the due dates that all small business owners should be aware of in January.

Payroll and Monthly Bookkeeping‍

Your monthly bookkeeping, payroll and EFTPS deposits should stay on track this month. Try to stick to business as usual with these tasks to keep systems running smoothly. If you're feeling overwhelmed with the extra tasks and deadlines, you can take advantage of your tax professional for an end-of-year cleanup. Most tax preparers offer this as an additional service, and it includes closing out and cleaning up your books for your tax return preparation.

Close Out Your Books‍

It's highly recommended that you close out your books at the end of the year. This accomplishes two tasks: (1) your financial statements are cleaned up and prepped for any audit or loan request (as well as the accurate preparation of your tax return) and (2) it gives you a clean set of books for the new year to better track your income and expenses! An additional bonus is you can customize and add more details to your financial statements at this point, which enhances your ability to analyze how well your business is doing throughout the year.

Quarterlies

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Your payroll quarterlies are due by the 31st of January. Make sure you have these signed and postmarked by that date to avoid any late penalties! Looking to hire a professional? Get an early start to ensure plenty of time for accuracy.

Annual Reports

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All small business owners must submit their W2s and 1099s to both their employees and the Internal Revenue Service by January 31st. The best way to tackle this project is to prepare your 4th-quarter reports first and then head straight into your annual reports while the information is fresh.

Additional Notes‍

This is a great time of year to ensure all your employees' and subcontractors' addresses and information is up to date in your system. Getting new forms filled out once a year should be part of every business' general practices and procedures. Make it part of your routine to have all employees fill out a new W4 annually and collect W9s from contractors as soon as they're expected to pass the $600 threshold.

While there are several deadlines and tasks that need to be accomplished in January, if you are aware of these dates and get started early and in the recommended order, it will flow smoothly, saving you a lot of time and headache down the road. If you're interested in hiring a professional, start now! Tax season is the busiest time of year for accountants and tax professionals, so you'll want to get scheduled in before they fill up.