Closing Out in 2020

The end of 2020 is fast approaching and we’re getting ever closer to December 31. We’d like to see you have a strong finish to 2020 so you will be well prepared for 2021, since having an accurate picture of what happened in the past will help you prepare for the opportunities that lie ahead. The following are a few considerations you may want to address in the next month:

  1. PPP Loans – If you received the Paycheck Program Program (PPP) loan, you will want to be sure that you get that loan forgiven if possible. For help in closing out this process, the SBA has put together a very helpful fact sheet that we have uploaded to our site here: PPP Loan Forgiveness Fact Sheet. Additionally, the SBA has updated their FAQ, available here. We are also available to help you complete this process and answer any questions you may have.
  2. As we move toward the end of the year, there may be some decisions you can make before December 31 to maximize your tax benefit. Most of these decisions have to do with timing – timing of larger purchases (i.e. equipment, vehicles, etc.), timing of invoices or receipts,  can make a difference;
  3. Perhaps 2020 has been a particularly difficult year for your business and you’ve had to shut your doors. What you may not realize is there can be more to closing out a business than just ceasing operations. Some of these details can have significant tax effects for the coming year, and we want you to have the best advantage possible, especially in difficult times.

Finally, you probably already know that you need a good tax preparer. You may know, as a business owner, that you need a good bookkeeper. And while we are proud to be able to be both of those things for you, you may not know the differences between these professions and accountants. Accountants will be able to go beyond the data input and analyze the data for you. Accountants use this information to come to certain conclusions that others may not see. Accountants can help you make sense of everything that happened and make better decisions moving forward. If you haven’t been taking advantage of your accountant’s skill set, get in touch with them/us today for a better year moving forward.

-Heritage Accounting and Tax Services