Financial Fluency: Year-End Tax Planning Tips Every Small Business Owner Must Know

Описание: In this episode of Balancing Acts, host Linda Hamilton sits down with Alana McNichol, CPA and Tax Director at Linda A. Hamilton CPA LLC, to discuss essential year-end tax planning strategies every small business owner should know.

As the year comes to a close, smart tax planning can make a significant difference in your profitability, cash flow, and financial clarity. Linda and Alana break down practical strategies—from understanding cash vs. accrual accounting to preparing for 1099 filings and avoiding common IRS issues.

In this conversation, you’ll learn:
•The difference between cash basis and accrual accounting
•Year-end tax strategies for small business owners
•How timing income and expenses can impact your tax liability
•What Section 179 and bonus depreciation mean for equipment purchases
•How to plan for estimated taxes and avoid surprises in the spring
•What the Beneficial Ownership Filing (FinCEN) means for business owners
•Key steps to prepare for 1099 and W-9 compliance
•IRS audit trends and what small businesses should watch out for

Whether you’re a startup founder, entrepreneur, or small business owner, these practical tax planning insights will help you make smarter financial decisions before the year ends.

Timestamps:
0:10 – Welcome to Balancing Acts
0:36 – Meet the Guest: Alana McNichol, CPA
1:35 – Introduction to Year-End Tax Planning
1:53 – Cash vs Accrual Accounting Explained
3:01 – Why Business Owners Must Know Their Accounting Method
3:26 – Tax Strategies for Cash-Basis Businesses
4:40 – Why You Should Never Hold Checks Before Depositing
5:05 – Balancing Tax Strategy and Cash Flow
5:51 – Paying Expenses Early Using Credit Cards
6:20 – Business vs Personal Credit Cards for Deductions
6:35 – Equipment Purchases & “Placed in Service” Rule
7:07 – Section 179 Deduction Explained
7:26 – Bonus Depreciation for Equipment Purchases
8:37 – Planning for Profit and Estimated Taxes
8:48 – Avoiding Surprise Tax Bills in March or April
9:35 – Safe Harbor Rule for Estimated Taxes
10:25 – Avoiding IRS Penalties with Quarterly Tax Planning
11:10 – Preparing Your Business for January
11:51 – Beneficial Ownership Filing Requirement (FinCEN)
12:45 – Filing Deadline and Penalties
13:04 – $500 Per Day Penalty Explained
13:40 – What Counts as a Beneficial Owner
14:14 – Who Can Help File Beneficial Ownership Reports
15:10 – Preparing for 1099 Forms
15:56 – January 31 Filing Deadline
16:20 – Who Must Receive a 1099
16:55 – Special Rule for Legal Fees
17:19 – Types of 1099 Forms Explained
17:49 – 1099-NEC for Non-Employee Compensation
18:30 – Best Practice for Reporting Vendor Payments
18:55 – Why W-9 Forms Are Critical
19:55 – When to Request a W-9 from Vendors
20:59 – What Happens If a Vendor Won’t Provide a W-9
21:59 – Do You Need a 1099 If You Pay by Credit Card?
22:09 – 1099-K and Third-Party Payment Networks
22:54 – Preparing for IRS Audits
23:48 – IRS Technology and Increased Enforcement
24:20 – “Emoji Audits” Explained
25:05 – S-Corporation Reasonable Compensation Rules
26:33 – Travel and Entertainment Audit Risks
26:55 – Vehicle Mileage Documentation Requirements
27:50 – Business Meal Documentation Rules
28:20 – What “Contemporaneous Records” Mean
28:55 – Apps for Tracking Mileage and Expenses
29:10 – Simple Ways to Document Business Meals

Follow Linda Hamilton for more interviews and insights:
YouTube:    / @growprofitscale  
LinkedIn:   / lindahamiltoncpa  
Website: https://www.growprofitscale.com/

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