Has this year flown by for anyone else?
It’s already the middle of October and that means it is already time to start thinking about preparing your books for year-end. So, what steps should you start taking now to be prepared?
Update Those Books
If you’ve been putting your bookkeeping on the back burner, now is the time to rectify that situation. Gather all your paperwork and start entering that data to reconcile your accounts now. You do not want to be worried about closing out your books at the same time you’re reconciling accounts from June. Also, with the holidays mixed into the end of the year, you’ll have less time than you think preparing your books for year-end.
Gather and Organize Those Statements
If you don’t already have a great way to get (or find) all of your financial statements, start the process now. Contact your financial institutions to get copies of your statements then put them all in one place. If you’re downloading them, organize everything into an easy-to-find file that you can send off to your tax professional next year.
Ugh, this is such a tough one to start if you have no current system in place. However, your life will be infinitely easier when it’s done. We recommend Dext to all of our customers. It is easy to snap a photo of your receipts and stores them in a digital file. It also syncs with lots of accounting applications making it easier to transfer and categorize your purchasing data.
Itemize Your Deductions
While you’re going through your transactions, be sure to itemize items that you know can be deducted come tax day. Things like your vehicle, mileage, fuel, internet, travel, or other utilities that you typically claim should be double-checked in your accounting app. This will ensure your books are clean and ready to send to your tax professional.
If you run a business with inventory, you need to have a plan in place to double-check it before the end of the year. You want to start each year out with a super clean and accurate number of items within your inventory.
Did you record all fixed assets properly? Do you have all those receipts and documents organized and easily found? Your tax person will need these items to make sure they are recorded and depreciated accordingly. Gather up that data while you’re sorting through the rest of it.
We know this is a lot to think about when preparing your books for year-end. Also, there can be more items to keep in mind, depending on your specific business. If all of this is overwhelming, contact us. Our team is great at putting processes in place! This ensures smooth closure of year-end and transfer of information to your tax professional when that time comes. Also, we’re great at helping businesses become more organized and paperless too!
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