4 Finance Planning Tips for Small Businesses in 2022
New Year’s greetings! Before you dive into your financial strategy for 2022, tie up any loose ends you may have from 2021. These may include small actions overlooked towards the end of the year which could impact your finances in this new year.
Check the following to ensure that you are on the right track:
1. Create an Action Plan
Go beyond your strategic plan and map out the actions you need to take within the year to meet your goals. When setting your action plans, include milestones with dates so that you can measure your progress when necessary. Go into detail and map out what you will do if you have met your milestones, and what corrective actions you can take if you have not.
2. File 1099 forms for your contractors
These forms are necessary if you have been working with independent contractors, freelancers, consultants, attorneys, or other non-employees earning at least $600 during the tax year. Issue these contractors with a 1099 form and file your tax returns in good time to prevent penalties.
3. Review your W2 forms for all employee benefits
The Wage and Tax Statement also called W-2 Form needs to be sent to the IRS at the end of the year. This form includes information on annual wages, as well as any deductions sent to the government by the employer. It also includes information on any taxes that have been withheld from paychecks. Employees need this form so that they can file their income taxes on time. Form W-2 must be sent to the employee by January 31st each year.
4. Incorporate the benefits of cloud computing to your accounting
Have you been using a desktop solution for your accounting and bookkeeping? In 2022, you should make the switch to cloud accounting software, such as Quickbooks Online. This will give you peace of mind as you need not worry about files being corrupted or losing your data. Furthermore, cloud accounting software enables your CPA to gain remote access as and when it is necessary. This can help speed up your decision-making.
Accounting is a continuous process. It’s great to do a review as the year kicks off, however, you need to work with expert accounting and finance professionals for the rest of the year. Qualified support helps you understand your business health and overall financial performance. RCN CPAs and Business Advisors are the ideal partners to support you with professional financial and advisory services in 2022. Book a discovery call.
