Mid year tax review topics
There’s no need to wait until the end of the year. June is the perfect time for a mid-year tax review for your business and your current financial strategy. There are plenty of potential benefits of conducting a mid-year tax review.
Meeting with your CPA during the summer months provides you with much-needed time to take action on any recommended business and/or financial changes. You’ll have the chance to review your business income and expenses year-to-date as well as your forecast for the remainder of the year. This can be extremely important as it will provide you with the opportunity to assess and potentially adjust estimated tax payments for 2023.
Furthermore, if you own a small business or are self-employed and don’t pay enough income taxes in withholding, you must make quarterly estimated tax payments to make up the difference. Since late or insufficient payments can result in fines, you must correctly calculate your income for the rest of the year. Working with a qualified CPA can help you prepare any necessary documents and effectively determine what you will owe in order to avoid any penalties as tax season rolls around.
Mid-year reports and assessments can provide you with insights into trends and successes as well as possible weaknesses; they can identify any potential benefits or problems that could arise during the rest of the year.
The due dates for your quarterly estimated tax payments are:
- April 15th for Q1
- June 15th for Q2
- September 15 for Q3
- January 15 for Q4
Get your questions answered
During tax season, it’s not uncommon for CPAs to work more than 60–70 hours per week. However, by scheduling a mid-year tax review during their slower season, you will have more time to spend utilizing their expertise on the trends from the 2022 tax season and where they see those trends heading in for the 2023 tax season.
If you have any concerns or questions to ask your CPA, sitting down with them will give you a better understanding of your tax situation and financial picture heading into the 2023 tax season. Which can save you time, stress, and frustration as the year draws to a close.
Be more prepared for tax season
A mid-year tax review can help you plan for the rest of the year and determine what actions you need to take to improve your business as well as reduce taxes. And, you’ll be able to ensure that you’re paying the right amount of estimated quarterly tax payments for the rest of the year.
If you’re interested in getting advice when it comes to your tax and financial needs, GYL CPAs and Advisors provides financial consulting services to make sure your business is headed in the right direction and prepared for the 2023 tax season.