As the year-end approaches, many business owners scramble to make sure their books are in order, and everything is ready for audit. The final quarter push is underway, and soon the holidays will come, bringing with them a sense of respite from stressful days at the office.
From finalizing your annual accounts to submitting returns, this is a critical period for accounting purposes. And it can be easy to miss important deadlines if you don’t know what to do.
This checklist will help you ensure that your accounts are up to date and accounting is ready when it comes time to file taxes.
Schedule a Bookkeeping Review
Your books should be reviewed regularly as your financial records change throughout the year. Scheduling an appointment with a professional tax accountant in Atlanta can help ensure your books are ready for the end of the year.
At the same time, your accountant will be able to point out any issues or errors in your books and advise you on how best to prepare.
This is especially important if you haven’t done one since last year or have changed your accounting software or service provider. Bookkeeping reviews are also useful for getting up to speed with the new tax laws and updates from the IRS.
Clean Up Your Accounts, Ledgers, and Transactions
When was the last time you checked and cleaned up your financial and accounting data? If it’s been a while since you reviewed your bank statements, credit card statements, or other financial documents, now is a good time to do so.
You might find that some transactions are still outstanding and need to be adjusted or removed. This will help prevent errors and avoid costly financial mistakes from happening next tax season.
To clean up your data and ensure it’s in good shape for next year’s tax return filing deadlines, you should:
- Update bank account balances so they reflect the most recent deposits and withdrawals made during the year.
- Delete any old entries or duplicate entries on your spreadsheet or accounting software program.
- Make sure all of your accounts are reconciled, and outstanding payments are paid.
Finish Your Financial Records
It’s time to go back through all of your financial records and check them for accuracy throughout the year, so they are ready to go when filing taxes next. This includes your company’s balance sheets, income statements, cash flow statements, and accounts payable and receivable.
You should also double-check that your bank statements and expenses have been entered into QuickBooks before the holidays start!
Compare Your Accounts Payable and Receivable
Check that all your vendor invoices have been paid and that you have received payment from your customers. If there are any outstanding invoices, contact your vendors or customers immediately to resolve any discrepancies.
You can also use this time to look for any missing receipts so that you’re not scrabbling at the last minute trying to complete your taxes.
Budget For Next Year
You should create a budget that reflects your company’s current financial status and how much money you’ll need to bring in to cover all expenses for next year.
Doing so helps ensure you don’t run into any cash flow issues during busy months when it may be difficult to collect payments from clients.
Are you worried about preparing for tax season, and are searching for an experienced tax accountant for your small business in Atlanta? Call Positive Rate Tax Advisors at (470) 315-1121.
From cleaning up your books to reviewing any late fees or penalties, we’ll take care of your accounting needs before the next fiscal year knocks on your door!