This time of year if full of holiday cheer, shopping, and fun in the sun or snow depending on your location. It’s also can be a vital time for your small business books. With financials, being put on hold for holiday parties, family and hot apple cider. But take a moment and better prepare yourself with some planning so your business’ year end is less frustrating and rushed. Having a look now will make your January much easier!
Reviewing and cleaning up your Accounts Receivables
Cleaning up you’re A/R should be your first step in preparing for year end. Review 20clients who have outstanding balances sending out reminders or new statements if necessary. Gather your past due invoices that you know must be written off due to not being able to collect. Review your Accounts Receivables so you can answer your accountant’s questions past due invoices more than 30 days.
Reviewing your Accounts Payable
You don’t want to carry a lot of liabilities into the new year so paying your bills by year end is a good idea. Pay your vendor payments and credit card balances! It’s always a great feeling to end a year with zero balances in A/P. If this isn’t possible to do completely, check which expenses must be paid, cover what’s due and pay out as much as possible. Focusing on paying debts with the highest interest rates first will save you more in the long run.
Finding and organizing receipts and invoices
Are your credit card slips and vendor invoices in several different folders? Getting them organized before year end is a good idea, and you will also want all your expenses categorized to the right accounts. Having original documentation to confirm your books is important. Having your credit card statement isn’t always enough. You need actual records of receipts and invoices. The added bonus to this… is it will make it so much more cost effective when you go see you’re your accountant.
Find your contribution letters
If you’ve made any donations to a 501(c)3 organizations this year you will want to get those together. Usually, in the form of letters that document how much your contribution was, which helps your accountant verify your giving and getting you the maximum deductions available.
Gathering up all your information
As a small business owner you will find several deadlines that come up very fast after the new year, including W2’s if you have payroll, and your vendors1099s.
Pulling everything together
Making sure your accounts are updated, and you have your receipts in one place, and knowing your A/R and A/P are in order. You’ll be able to sit with your accountant confidently knowing that you’re small business books are in order. Having everything in order gives you a better chance that you won’t have to file an extension.
If you find that all these tasks can be done but you simply don’t have the time to do your small business books BooXkeeping can help! Contact Us for your complimentary consultation today.