Business Taxes Checklist for Ending Q3 and Starting Q4

Do you want to stay at the top of the various tax obligations and streamline your taxes? If yes, we will be providing you with information to help manage the taxes appropriately. Generally, when businesses complete their financial accounting on time, it helps avoid penalties. 

Staying on top of quarterly taxes, payroll taxes, and potential tax credits helps optimize financial resources and prevent compliance issues. 

Below we have provided a comprehensive checklist that helps guide you through the ending of Q3 and beginning of Q4 with confidence. 

5 Key Points to Include in Your Business Taxes Checklist for Q3 and Q4

Check out these points to optimize your business taxes as Q3 ends and Q4 begins:

Review and Adjust Your Goals

Quarter 4 is all about starting and ending strong in the market, and depending on the market conditions, you can set a goal. Your goals will also align well with the complete financials and have accurate data. Business owners will have an accurate idea of their gross revenue and overhead expenses that they bear. Additionally, being a business owner, you also need to evaluate your profitability, which is 

Profitability = (Revenue Less Variable/Direct Costs) 

Quarter 4 presents a unique opportunity for businesses to reduce Q3 costs by analyzing these variables/fixed expenses. 

Create a Tax Projection

After you have gathered a prominent picture of the current net income for the year, you need to forecast expenses/revenue. Based on the estimated net projection of income, you need to tax appropriately depending on LLC or Corporation scale business.

For an LLC, this expenditure includes any personal income along with your household. All these tax bills are essential to understand your year-end tax bills. You can check these estimates out and set aside the money to pay the tax estimates. 

Ensure Profitability by Understanding the Additional Taxes 

After reviewing the numbers, do you find that your business pace net income is over $60,000? If you are a sole proprietor or a single-member LLC or LLC partnership, you may need to pay additional self-employment tax. 

This is 15.3% of the taxes, it adds up to your net bills and might increase your overall tax bills effectively. We would recommend you reach out to your accountant and discuss this review and get an appropriate overview of the situation. 

Deal with Payroll Taxes: The Elephant in the Room

Payroll taxes are either dealt with in-house or by a professional employer organization or PEO. Payroll taxes are typically remitted quarterly, aligning with federal taxes and state tax schedules. 

This is an ideal time for a business owner to understand that all withholdings are appropriately accounted for. Whether you are handling the payroll internally or through a PEO you can ensure that filings are accurate and complete. 

Check Out Tax Relief Through Tax Credits and Deductions 

Tax credits are known to reduce your tax burden significantly. Some of the common credits we advise you to keep an eye out for are: 

• Research and Development Credits 
• Energy Efficiency Credits 
• Other Incentives Based on Industry

When you file for the credits, we assure you that you can save thousands of dollars. Consult with a professional tax organization to get a detailed understanding of the applicable credits and deductions. 

Final Words

If you are diligent regarding your Q3 and Q4 tax savings, it can help you to prevent costly penalties. Start optimizing your financial situation and review your quarterly estimated payments by September 15, 2024. These will help you to stay on top of the payroll tax obligations and explore potential tax credits. 

If you are seeking an appropriate organization that might help process taxes, contact us. If you are seeking more information regarding the tax checklist, go through our blogs section. We will help you out with the necessary information and process your Q3-Q4 taxes. 

Reference Links 

https://engagecpas.com/blog/4th-quarter-small-business-checklist/

https://withdouble.com/blog/checklist-for-quarterly-planning

https://medium.com/@finotor/understanding-the-calendar-when-does-q3-really-end-9889844cbccf

https://www.rhythmsystems.com/blog/how-to-close-out-a-quarter