It’s almost the end of the year, and although the holidays are coming, there are a few tasks you need to address before year end. Getting your financials in order now will start you off right for the New Year. A Step Up wishes you a very merry holiday season and a prosperous 2011.
1. Invoice your clients for all outstanding time and expenses. You want to be sure that invoices are sent for all work done during the year, and many of your customers will want to pay you for this work now to lower their tax liability. Make it easy for them to do so!
2. Review your open receivables and determine if any should be sent to an outside collection agency for assistance or if they are un-collectible. If you are on an accrual basis, you can write these off as bad debts and lower your business profit totals.
3. Reconcile all bank accounts, credit card accounts and loan accounts. You need accurate balances to make informed decisions for the future.
4. Prepare a budget for next year. Review this year’s reports and set a plan for realistic growth next year. What income categories were profitable? What expenses can be trimmed? Set a plan for how you will increase revenue and lower expenses in the coming months.
5. Double-check all employee addresses and social security numbers. Remind employees to submit new W4 forms if their tax situation has changed, or if they want to retain their federal ‘exempt’ status.
6. Get address and social security numbers for all 1099 contractors. Send W9 forms to obtain this information if needed. Review all names, addresses and tax ID information as well as the categories of payments made for accuracy.
7. Meet with your CPA to review your preliminary totals. There are things you can do now to reduce your business tax liability, such as contributing to a retirement plan or paying employee bonuses, but they often must be done before December 31st. It also may not be a good idea to make a large equipment purchase at this time. Depreciation deductions are not as favorable if the majority of the year’s purchases were made in the last quarter. Talk to your CPA about your tax strategy for this year. Of course, you will want to have your records in order and caught up to reap the most benefits from your meeting.
QuickBooks also has a ‘Year End Checklist’ that you can print out and check off items as you complete them. Select ‘Year-End Guide’ from the ‘Help’ menu in QuickBooks. You can print the checklist, or save your checked items right within your data file.
A Step Up Bookkeeping Services is available to perform a wide variety of your bookkeeping and payroll tasks, at a reasonable cost. We also offer QuickBooks setup and training services. Call today for a free no obligation consultation-603.679.2022
