March 2025 Reminders
As we step into March, small business owners should stay on top of key accounting and bookkeeping tasks to keep their finances in order. This month is especially critical due to tax deadlines, bookkeeping maintenance, and financial planning for the upcoming quarter. Here’s what you need to focus on:
Accounting and Tax Deadlines
March 15: Business Tax Return Deadline
- If your business is structured as an S-Corporation (Form 1120-S) or a Partnership (Form 1065), your tax return is due by March 15. If you need more time, make sure to file an extension (Form 7004) to avoid penalties.
March 31: 1099 Electronic Filing Deadline
- Businesses that paid independent contractors or vendors $600 or more in 2024 must file Forms 1099-NEC, 1099-MISC, and 1099-K electronically with the IRS by March 31. If you haven’t done so already, ensure that all 1099s were correctly issued and submitted.
Quarterly Estimated Tax Payments
- If your business makes quarterly estimated tax payments, now is the time to review your Q1 tax liability and adjust payments if needed before the April 15 deadline.
Sales Tax Filings
- Depending on your state, sales tax filings may be due in March or early April. Verify deadlines with your local tax authority and ensure all collected sales tax has been properly remitted.
Bookkeeping Recommendations
Close February’s Books
Reconciling your accounts is essential for accurate financials. Make sure to:
- Reconcile bank accounts, credit cards, and loans.
- Verify that all invoices and payments are recorded properly.
- Review your accounts payable and receivable to stay on top of outstanding balances.Financial Planning
Follow Up on Overdue Invoices
Now is a great time to review unpaid customer invoices and send reminders or follow-ups. Late payments can affect your cash flow, so ensure that you are collecting what you’re owed.
Payroll & Compliance Check
- Confirm that payroll tax deposits are made on time.
- Review and update employee W-4 forms and state withholding forms, if necessary.
- Ensure that your payroll records are accurate and compliant.
Categorize Expenses for Tax Filing
Organize Financial Records
Spring cleaning isn’t just for your home—clean up your digital and physical financial records:
- Organize and store receipts, invoices, and tax documents.
- Archive old records that don’t need to be readily accessible.
- Cancel unused subscriptions or services that are draining your cash flow.
Financial Planning & Strategy
Review Budget vs. Actuals
Compare your February financials against your budget and adjust forecasts as needed. This will help you identify trends, potential cost savings, and areas for growth.
Maximize Tax Deductions
Before filing your 2024 taxes, ensure that you have accounted for all eligible deductions. Some common deductions include:
- Business meals, travel, and home office expenses.
- Equipment, software, and professional services.
- Employee benefits and retirement plan contributions.
Assess Business Cash Flow
Take a deep dive into your business cash flow:
- Identify unnecessary expenses and cut costs where possible.
- Ensure you have a healthy cash reserve for upcoming expenses.
- Plan for any large upcoming purchases or investments.
Prepare for Q2 Growth
March is a great time to assess your business goals and strategies for the next quarter. Consider:
- Adjusting your marketing and sales strategies to boost revenue.
- Streamlining business operations for greater efficiency.
- Planning for hiring or outsourcing if your workload is increasing.
Business Insurance & Compliance Check
- Review your business insurance policies (liability, workers’ comp, etc.) and renew if needed.
- Ensure that any required business licenses or permits are up to date.
- Stay informed about any regulatory changes that could impact your business.
Final Thoughts
By staying proactive in March, you can avoid last-minute tax stress, keep your books in order, and position your business for success in Q2. Need help with bookkeeping or tax preparation? VirtuCount Bookkeeping, Accounting, & Tax is here to assist! Contact us today to stay ahead of your financial obligations and make smarter business decisions.
Have questions or need assistance? Reach out to us for expert guidance and bookkeeping support!
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