Attention Business Owners, the Dec. 31st year-end is fast approaching!
Whether you are a Sole Entrepreneur or a Corporation, it is time to start planning and getting your bookkeeping organized.
4 Tips to Prepare for Year-end Financial Closure
1. Do Not Wait Until the Last Minute
With many businesses year-end date being the 31st of December, this means bookkeepers are already quite busy. When you are late having everything prepared it delays the time your bookkeeper can put into your business.
Ensure your accounts are reconciled, expenses are accounted for. Don’t let your books fall behind of get in the way of a successful year-end close.
2. Gather your Bank, Credit Card & Line of Credit Statements
Reach out to your financial institution for copies of your statements and records now—there’s still time! While you can probably download statements and records online, you might need a little assistance getting records dating back to the beginning of the year.
Once you’ve reached out to your bank, gather everything your bookkeeper will need. That means you’ll have to provide an income statement and a cash flow statement that reports changes in your balances due to operating and investing costs.
3. Organize All Purchase Records and Receipts
If your current filing system consists of a shoe box and a lot of enthusiasm, then it’s time to upgrade. Short of going through each piece of paper by hand, you’ll need a reliable document scanner to keep everything organized digitally. Investing in a digital scanner means not having to worry about faded ink, water damage on old documents and/or lost documents.
Speak to Censea Bookkeeping about Receipt Bank the document management app that will keep those receipts in order.
But, if you must keep that shoe box of paper receipts, do your part and keep everything in one place. If nothing else, upgrade from a shoe box to a filing cabinet and sort your documents by date, purchase type, or cost. We promise, something that seems as small as organization will mean the world to your bookkeeper.
4. Itemize your deductions
As you prepare your year-end financial close, don’t forget to think ahead to another important financial day. That’s right: Tax Day. Take stock of everything you have that might count toward your operating expenses, especially your vehicle and home office.
If you use your personal vehicle for business, keep a record of your total number of miles driven, reason for each trip, fuel costs, and dates. If you use your home office to conduct business, you can claim some expenses like rent, utilities, maintenance, and insurance on your tax return. In either case, your bookkeeper should be able to help you calculate your deductions.
Censea Bookkeeping & Business Solutions can assist your business with having a smooth year end transition. Book An Appointment With Us Today.