Top Tips to Prepare for Year-end!
It’s that fantastically busy time of year for bookkeepers and business owners! With many businesses’ year-end date being the 31st of December, this means bookkeepers are already quite busy.
Your T-Slips are due January 28th and sometimes the holidays distract from getting that final paperwork complete before you take a well-deserved break. Below are the top tips to help prevent the year-end rush!
1. Do Not Wait Until the Last Minute
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 or get in the way of a successful year-end close. Schedule your year-end sorting for the end of November this year, that way you’ll only have December to deal with at the end!
2. Gather your Bank, Credit Card & Line of Credit Statements
Most major banks now have 1-2 years of your online statements accessible online. It’ll probably only take 5-10 minutes to gather everything your bookkeeper needs. You will still need 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 shoebox and a lot of enthusiasm, 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. Today, most people use their mobile phones. If it makes better sense to scan, then a small investment in a decent scanner is a great idea.
If you must keep that shoebox of paper receipts, do your part and keep everything in one place. If nothing else, upgrade from a shoebox to a filing cabinet and sort your documents by date, purchase type, or cost. We promise something that seems as small like organization will mean the world to your bookkeeper and save you money!
Talk to us about Receipt Bank, the document management app that will keep those receipts in order!
4. Itemize your deductions
As you prepare your year-end financial close, remember to think ahead to another important financial day — 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 kilometers driven, the reason for each trip, fuel costs, and dates. If you use your home office to conduct business, you can claim expenses such as rent, utilities, maintenance, and insurance on your tax return. In either case, your bookkeeper can help you calculate your deductions.
Censea Accounting & Business Solutions can assist your business by having a smooth year-end transition. Who isn’t looking to end 2020 completely!?! Book a Call With Us Today.