DMS Digest, December 2021
- With 11 months of 2021 behind us, it provides an opportunity to reflect on how the year went and how we may have wanted it to go differently. Further, with Thanksgiving recently passed, it hopefully provided an opportunity to reflect on all we can be thankful for.
- With 2022 right around the corner, this should be a time where we finalize our plans to accomplish new goals, deepen connects, foster opportunities and better our businesses.
Hopefully this edition will inspire you and provide some practical guidance to reflect on the past and build a plan for the new year. We have some great content, make sure to check out the article in the “Build Your Business” section for some advice to prepare for a successful year end and the article by our guest contributor which provides insight on being balanced. For some fun and some help with your holiday shopping, be sure to check out the section which highlights picks by the DMS team for our favorite local shopping destinations. With the holidays right around the corner and gift giving season upon us I want to encourage you to support your neighbors and community and Shop Local!
Sean
Once Holiday Season comes and goes, as business owners and accountants we are facing another long list of deadlines. These deadlines will come and go faster than your Christmas morning coffee. So now is the time to be proactive and start the New Year off right.
1040’s, 1065’s, 1120’s, 1099s, W-2s, 941’s, State and Local Payroll Tax Returns, enough numbers to make your head spin. All of these loom over us as we start the new calendar year. However, just because the due dates may be January 31st, March 15th, April 15th, etc., it doesn’t mean you have to wait until the last minute to file these returns. Take the month of December to start preparing for these due dates. You will not be able to file the returns until December is over, but you will be able to save the amount of time spent in future months and allow you to focus more of your time on your business.
1. You may close the books every month, however when you close November’s books, go through the books thoroughly. Treat November as a year-end close so that when December closes, you have made your adjustments and have only 1 month to focus on instead of 12 months.
2. For your income tax returns, you will need estimates paid throughout the year, IRA contributions, medical expenses, etc. Start gathering this information now. During December as you make your payments, add the support to your files simultaneously. Remember, the sooner you provide the information to your tax preparer, the quicker you will receive your refund.
4. If using a payroll provider to file payroll returns, reach out to them to make sure they have everything they need. If the business is an S Corp, let the provider know whether you have Owner Health Insurance that needs to be added to the owner’s W-2. If you are filing the payroll returns yourself, similar to 1099s, start putting together a template identifying Names, Social Security Numbers, addresses, etc. Once the final payroll is made for the year then you will be able to finalize the information to place on the forms.
All of this is overwhelming to think about now, but it’s even more overwhelming to face a deadline in a few days and have nothing prepared. At DMS Management Solutions, these are just a couple of practices we implement to help you focus on the road ahead instead of information from the past.
DMS Named to Weatherhead 100
For the fifth time in six years, DMS is proud to be named to the Weatherhead100.
Established in 1988, the Weatherhead 100 awards are the premier celebration of Northeast Ohio’s spirit of entrepreneurship and the companies leading the way in Northeast Ohio. Each year, the Weatherhead School of Management at Case Western Reserve University recognizes an elite group of companies who are the best examples of leadership, growth and success in our region.
DMS Training & QB ProAdvisor Update
DMS Management Solutions places a high priority on providing training, technology tools, and continuing education to our team members so that they can best serve our clients.
Since our last newsletter, we have continued to add to our roster of 2021 QuickBooks Certified ProAdvisors.
Samantha Rada
Ralph Fairchild
Don’t Rock the Boat!
by guest contributor Justin Hamlin, Client Advisor, CFP
HFS Wealth Advisors
Just as a boat sails through the open seas when all four corners of the boat are balanced equally in the water, your overall health allows you to sail through the journey of life when all four pillars are properly balanced.
- Physical/Mental
- Work/Activities
- Family/Friends
- Finances
Balancing the 4 pillars in the lives of each of your employees allows your company’s boat to sail through the open seas. This keeps individuals fresh, focused, and also creates an overall improvement in their well-being. When employees are feeling at the top of their game, then they are not distracted by handling personal items on company time.
About the author
*Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.Investment Advisory Services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge Investment Research and HFS Wealth Advisors are not affiliated companies.This message is the property of HFS Wealth Advisors or its affiliates. It may be legally privileged and/or confidential and is intended only for the addressee(s). No addressee should forward, print, copy or otherwise reproduce this message in any manner that would allow it to be viewed by any individual not originally listed as a recipient. If the reader of this message is not the intended recipient, you are hereby notified that any unauthorized disclosure, dissemination, distribution, copying or the taking of any action in reliance on the information herein is strictly prohibited. If you have received this communication in error, please immediately notify the sender and delete this message.
Corrigan Krause CPAs: Enhancing Value for Succession Planning
After devoting so much time and effort to building your business, maximizing its value becomes more important as the timeframe for a succession plan grows near. Estimating a value for the business is one important step to undertake at the outset of the succession planning process. From that starting point, you can then plan for enhancing value for the eventual exit from the business, and focus on the areas that can “drive” increases in exit value. These areas are commonly referred to as value drivers.
- Management
- Employees
- Reduction/Mitigation of Other Risks
- Revenues
- Cash Flow
Additionally, having a planning mindset for “five years down the road”, so there are explanations and/or analyses ready for potential future buyers, will help to enhance the value of your business.