Are you prepared for year end? At the end of the year, it’s very important to review your business financials as this information will be used to prepare your tax returns. It’s important for you to review and understand your business financials regularly throughout the year so that you catch errors and analyze the performance of your business. Always knowing the status of your business allows for planning and, if needed, a change of plans before it’s too late. Are you prepared for year end?
By the time year-end passes and you start to think about your bookkeeping and taxes, you are too late.
You need to attend to your bookkeeping before year-end and do some tax planning. Updating your bookkeeping and reviewing it prior to year-end is very important as you can do something about your tax situation before the turn of the calendar.
Having correct information will save you time and money as your tax preparation professional will be able to prepare accurate tax returns on a timely basis, with less need to meet with you to answer questions. It also means that if you get audited, you are easily able to produce the necessary records to respond. And, as you begin the new year you can focus on growing your business instead of searching for receipts, balancing bank statements and creating reports for your tax preparation professional.
In addition, it will not be necessary for you to file an extension with the IRS. This, in turn, enables you to file your personal taxes timely.
Whether you will be meeting with an accountant at the end the year or trying to make the best of accounting for yourself in the coming year, do yourself a favor and follow this year-end bookkeeping checklist to ensure that when you start off next year, you and your business have all the benefits of effective bookkeeping.
If you are feeling overwhelmed with this and need help, please schedule your free consultation. Yes, I need help!
Looking for more bookkeeping information or tips? Check out our post on 5 Steps for Avoiding Overdue Accounts