The new year is quickly approaching which means your year-end bookkeeping needs to be reviewed and wrapped-up very soon. The checklist which follows will help you through the main points so you’re ready for your meeting with your Tax Specialist or CPA. Taking time to make your accounting accurate can reduce headaches later, especially at tax time, and will also save the extra money your CPA charges you to sort through a mess!

1. Bring your bookkeeping up to date

The first step is to bring your books up to date. Compile your data, get all those receipts in, enter payments, send out invoices for work done before December 31st, categorize everything and clean out that wonderful ‘Miscellaneous’ category. If you don’t use an external bookkeeper regularly then this is the one time a year it is highly recommended, even if you only view the service to check your work.

2. Be sure you are capturing all income and expenses applicable to your business

This effort includes reviewing your business and personal bank accounts, credit cards and other accounts for possible business expenses. Review mileage logs and charitable contributions also. If you’re one who’s been co-mingling your personal accounts and credit cards with your business expenses then it’s even more important to be organize and file all back-up information. The IRS doesn’t like it when you co-mingle business and personal expenses. Also, some deductions may be overlooked. Make next year the year that all income and expenditure is run through a separate business account and credit card.

3. Organize and make notes on expenses

Make sure all your meals and entertainment expense receipts include who you met and the purpose of your meeting in addition to date and amounts. The IRS allows you to deduct 50% of these expenses so make sure you don’t miss one.

4. Update W9 information for all 1099 eligible vendors

Check that you have up-to-date W9 information for all 1099 eligible contractors and vendors as these need to be sent out by January 31. The same goes for W2’s if you have employees. The onus is on you as an employer to get the W2 to your employee on time, so this is a good time to check addresses for everyone you hire.

5. Reconcile, review and close your books

Once you have everything up to date it’s time to close your books:
• Once all your income and expense data is entered, you should reconcile all your Balance Sheet accounts.
• Review reconciliations for any outstanding items.
• Schedule and complete a physical inventory, if applicable.

Summary

If your books are a mess because didn’t have time or just hate doing bookkeeping, we highly recommend you outsource the work to a local bookkeeper. The service will be completed in less time and will be more cost effective (and yield better use of your time).

Focus on what you do best.

Your Biz Manager (www.YourBizManager.com) can help. You can start the process by sending us an e-mail (info@YourBizManager.com) with your contact information, a list of your bookkeeping or business support needs or by texting or calling 424-246-6006.

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About Doris Cristiano & YourBizManager.

As an independent bookkeeper, Doris has been providing flexible business services in Santa Monica and West Los Angeles since 1997. To support Clients’ needs and growth, YourBizManager tailors its services to each unique business situation and works closely with its clients at their business or home office.  More About Us