As we draw towards the end of the year, you’ve probably started thinking about taxes as a businessman or woman. If you find yourself thinking about taxes and bookkeeping at the end of the year, you’re too late. Moreover, you are likely to experience unnecessary bookkeeping hassles.
It’s imperative you attend to your bookkeeping before the year ends and perform some tax planning. It’s also important you update and review your bookkeeping so you can do something about your tax circumstance before the year ends.
Remember, you must handle some bookkeeping tasks regardless of the time of year. Here’s a list of some of the things you should do before the year ends to avoid bookkeeping hassles.
Clean up the Books
Ensure you enter all the year-to-date revenues and expenses before the holidays. Additionally, ensure you’ve reconciled your bank accounts to verify whether you’ve captured all expense and revenue items that flowed via the bank, including any bank and service charges. Once you’ve updated them, you can obtain precise loss and profit reports, revealing your position in the holiday season, reducing guesswork.
Once you close your books for the month, it’s important you go through some economic analysis and reporting. There’s no use in keeping up with the bookkeeping if you aren’t going to use your economic system to ensure you’re attaining your goals and make the necessary adjustments in order to keep track.
Keep up with Benefits and Payroll
It’s prudent to keep up with any rectifications or problems you must address in your payroll before the year ends. Benefits that you’re likely to forget include company vehicles or third-party sick pay as well as benefits such as life and health insurance, educational reimbursement, and transportation subsidies.
Review Predicted Cash Flow
You should constantly have an idea of your cash flow objectives. You could remind yourself weekly and make necessary adjustments. It’s advisable you have a monthly, weekly, and yearly cash flow projection. This way, you’ll have an instant and holistic view of your cash flow objectives.
Meet with a Tax Expert
As we approach the end of the year, it’s time you estimated your revenue tax liability and evaluate choices for decreasing your taxes. Once you’ve updated your books, your tax expert can help you approximate the amount you’ll owe so you can set it aside.
Additionally, you could examine the choices for untaken deduction. If you have complicated accounting, it’s worth having a qualified accountant or bookkeeper examine your records before submitting. This way, you can avoid unnecessary bookkeeping hassles.
Schedule Check-ins Regularly
You shouldn’t wait until the end of the year to examine your finances. Although freelancers and entrepreneurs are very busy, even those businessmen who are stretched-thin could find some time to ensure their financials are organized.
To operate your business effectively and avoid surprises, it’s vital you maintain financial visibility. Consider setting some time aside either monthly or quarterly to perform a thorough examination of your expenses and revenues.
The simple practice could prevent last-minute surprises from emerging during tax time. Alternatively, you could produce some calendar alerts to avoid forgetting. Examining your books regularly could also offer insights to operate your business better.
For instance, a quick examination of your finances could reveal the average duration it takes for customers to remit payment. To limit outstanding invoices and enhance cash flow, you could set up reminders automatically for customers to pay their invoices after 30 or 15 days.
As you approach the end of the year, the last thing you want is year-end bookkeeping hassles. Fortunately, you can avoid the last minute rush by adopting these tips.
Dailey Bookkeeping Services is a Xero Certified BRONZE Partner and a QuickBooks Online Certified Advisor, so if we can help you with your bookkeeping needs, just give us a call, we would love to help you! The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Bronze Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can! Feel free to visit our website at http://www.