September is a crucial month for business owners as it marks the end of the third quarter and the beginning of the final stretch of the year. This month, we’ll focus on important financial strategies, upcoming deadlines, and preparing for the end of the year. By addressing these areas, you can ensure your business is on track for a successful finish to 2024 and a strong start to 2025.
The Importance of September
September is not just another month on the calendar; it’s a pivotal time for business owners. Here’s why:
- Year-End Planning: With just a few months left in the year, now is the time to review your annual goals and make any necessary adjustments to meet them.
- Tax Deadlines: Several key tax deadlines fall in September and October. Staying on top of these deadlines is crucial to avoid penalties and interest.
- Quarterly Review: Conducting a thorough review of your Q3 performance sets the stage for Q4 planning and ensures you finish the year strong.
Action Step: Mark your calendar with important dates and set aside time for a comprehensive business review.
Key Tax Deadlines
September and October are critical months for tax deadlines. Here’s what you need to know:
- September 16th Deadline:
- Partnerships, Multi-Member LLCs, and S-Corps: The deadline to file your extended tax returns is September 16th.
- Reminder: The extension was for filing, not for paying any liabilities. Interest continues to accrue on unpaid taxes.
- October 15th Deadline:
- Personal Tax Returns: The deadline for filing extended personal tax returns is October 15th. Plan ahead to avoid last-minute stress.
Action Step: Ensure all necessary documents are gathered and organized for these filings. Consult with a tax professional to verify that everything is in order.
Mid-Year Tax Planning
Effective tax planning doesn’t just happen at the end of the year. Mid-year is an ideal time to optimize your tax strategy and maximize savings.
- Review Tax Payments: Check your estimated tax payments and make any necessary adjustments to avoid underpayment penalties.
- Maximize Deductions: Identify and track all eligible business expenses to maximize your deductions.
- Consider Retirement Contributions: Contributing to retirement plans can reduce your taxable income and secure your future.
- Plan Major Purchases: Timing major purchases or investments can have significant tax benefits.
Action Step: Schedule a meeting with your tax advisor to review your current tax strategy and make adjustments as needed.
Conduct a Q3 Performance Review
Reviewing your Q3 performance is essential for understanding your business’s current position and planning for Q4.
- Analyze Financial Statements: Review your income statement, balance sheet, and cash flow statement. Identify trends and areas for improvement.
- Compare Against Goals: Assess how well you met your Q3 goals and understand the reasons behind any discrepancies.
- Adjust Strategy: Based on your analysis, adjust your strategy for Q4 to address weaknesses and leverage strengths.
Action Step: Hold a team meeting to discuss Q3 performance and set clear objectives for Q4.
Ramp Up Tax Planning for 2025
As we approach the end of the year, it’s time to ramp up your tax planning efforts to ensure you’re prepared for 2025.
- Estimate Year-End Taxes: Calculate your potential tax liability and make any necessary adjustments to your estimated payments.
- Plan for New Tax Laws: Stay informed about changes in tax laws that might affect your business and plan accordingly.
- Utilize the “Profit First” Methodology: Ensure you’re setting aside funds for taxes by prioritizing profit. Allocate a percentage of your income to a tax reserve account.
Action Step: Create a detailed tax planning checklist to ensure you cover all bases and avoid any last-minute surprises.
Prepare for Q4 and Beyond
With Q4 approaching, it’s essential to set clear goals and strategies for the final quarter of the year.
- Set Q4 Goals: Define specific, measurable, achievable, relevant, and time-bound (SMART) goals for Q4. This keeps your team focused and motivated.
- Create an Action Plan: Develop a detailed action plan to achieve your Q4 goals. Include timelines, resources, and responsibilities.
- Plan for 2025: Start thinking about your business goals and strategies for 2025. Use the insights gained from your mid-year review to inform your planning.
Action Step: Schedule a strategic planning session with your team to outline your goals and action plan for Q4 and 2025.
September is a pivotal month for business owners to review their financial strategies, prepare for important tax deadlines, and set the stage for a successful end of the year. By focusing on mid-year tax planning, conducting a Q3 performance review, and ramping up your tax strategy for 2025, you can ensure your business remains strong and financially healthy.
Implementing the “Profit First” methodology throughout these strategies can further enhance your financial stability and profitability. If you need assistance with any aspect of your September business check-up or planning for Q4, don’t hesitate to reach out.
Let’s discuss how we can help you achieve your business goals for the rest of the year and beyond. Click here to schedule your free consultation.
Looking forward to helping you succeed!
