What must be done if a company’s accounting period ends on December 31st?

When a company's accounting period ends on December 31st, it marks the close of their annual financial reporting cycle. Following this closure, the company must consider their tax obligations for the upcoming quarterly payments, which begin in January. This is vital for compliance with tax regulations, as businesses that operate on a calendar year are required to estimate and remit quarterly tax payments based on their income projections for the upcoming quarter. By starting these considerations in January, the company ensures they are proactively managing their tax liabilities and adhering to IRS deadlines.

The other options do not align with the necessary actions a business should take after concluding an accounting period. Considering July for quarterly payments does not reflect the standard scheduling of estimated payments immediately following the end of an annual accounting period in December. Skipping the next payment or switching to a biannual payment schedule would also not be appropriate without proper justification and could lead to penalties or interest for late payments. Thus, the focus on January for upcoming quarterly payments is essential for maintaining good standing with tax obligations.