The last month of the 2023 year is a crucial time for any business. Many businesses are preparing for the upcoming tax season, discussing an option of investing in internal audits, reviewing plans for the year ahead, and laying the groundwork for next year’s budget. Though everyone in your business must think ahead, a handful of common mistakes can quickly undermine your efforts or even put you behind your long-term business goals.

Here are six tips and considerations businesses of all sizes should consider as they close out the year and what to include in your financial checklist to avoid last-minute scrambles and added hassles once the new year begins.

Planning ahead for your business is essential for success, especially when it comes to the annual budgeting and forecasting process. Unfortunately, many businesses make the mistake of waiting until the last month of the year to start thinking about their plan for the following year. This can lead to increased stress and rushed decision-making, as well as limited time for course correction if something goes wrong. Additionally, businesses that wait too long to plan may miss out on opportunities to grow or take advantage of new trends or market shifts. It’s crucial, therefore, to prioritize this process early on to ensure that you have a solid plan in place and can make strategic decisions with adequate time to adjust as needed.

It’s important to remember that tax preparation is a highly specialized field that requires a lot of expertise and knowledge. As such, business owners should be proactive about setting up meetings with their tax preparers throughout the year to ensure that they are staying on top of their tax situation. This can involve discussing any changes or developments in the business, reviewing financial statements, and strategizing for the upcoming tax year.

By communicating with your tax preparer regularly, you can also avoid the stress and overwhelm that can come with trying to address all your tax-related questions at the end of the year. For tax preparers, the end of the year is typically the busiest time, and they may not be able to provide the level of attention or support that you need if you wait until the last minute.

That said, it’s also important to be mindful of your tax preparer’s time and schedule. As tax preparation is a highly seasonal business, it’s important to value timing and lead with compassion when working with your tax preparer. This means being respectful of their time and availability, providing them with the information and documentation they need in a timely manner, and being proactive about scheduling meetings or check-ins throughout the year.

Overall, by prioritizing regular communication with your tax preparer and being mindful of their time and schedule, you can ensure that you are fully prepared for tax season and are taking advantage of any potential tax savings or deductions. This can help you save money, avoid errors or omissions on your tax return, and build a stronger relationship with your tax preparer over time.

International independent contractors are great for small and growing businesses because as long as they are correctly classified as contractors, it’s simple — they invoice you, you pay them, and there are generally no tax consequences.

When it comes to international independent contractors, it’s important to understand the implications of filing 1099 forms. In general, if these contractors are correctly classified as contractors and not as employees, the process is relatively straightforward. They invoice your business, you pay them accordingly, and typically, there are no significant tax consequences.

However, it’s crucial to note that tax regulations and requirements can vary significantly across different countries. It’s essential to consult with a tax professional or an international tax specialist who can provide guidance specific to the country where the contractor is located. They can help ensure compliance with any applicable tax laws, reporting obligations, and potential tax withholding requirements.

Engaging international contractors can be advantageous for small and growing businesses, offering flexibility and specialized expertise. Nonetheless, it’s vital to approach the tax aspects with care to avoid any unintended consequences. Seeking expert advice can help navigate the complexities associated with international contractor engagements and ensure that your business remains compliant with both domestic and international tax regulations.

Remember, staying informed and seeking professional guidance will help you make informed decisions, maintain compliance, and establish positive relationships with international contractors while leveraging their valuable contributions to your business.

As per IRS guidelines, companies don’t need to send 1099 forms to international contractors who performed their work outside of the country and aren’t U.S. taxpayers. In these cases, contractors will file the tax in their home country.

Many companies are rethinking their policies and considering establishing clear return-to-office policies; some are transitioning into the remote work plan. The COVID-19 pandemic has changed how people think about work and how it can be done.