December 11, 2020
- Taking care of these tasks as soon as possible will help you go into the new fiscal year stress-free, with the ability to continue building your business.
- With the right organization and timelines, you can reduce your taxes for next year through smart bookkeeping.
- Contact us at 973-276-0650 to outsource your bookkeeping to our experts!
Our bookkeeping team helps small business customers maintain a budget and minimize their tax burden through careful planning.
The end of the fiscal year is just three weeks away, but this is no time to panic. Make sure you tackle the following critical tasks to end the year smoothly and help your business succeed:
- Reconcile your books. Perhaps the most important task, and the one that will speed up the rest of the bookkeeping process, is to reconcile your accounts. Before doing anything else, take the time to gather up all of your business’s financial records for the year: credit card statements, payroll liabilities, asset accounts, etc. Then, put all these records into one file.
- Maintain your Accounts Receivable and Accounts Payable. To ensure a smooth transition to the next fiscal year, your Accounts Receivable and Accounts Payable need to be accurately monitored. All customer invoices should be appropriately logged and kept within easy access for your records. Additionally, invoices that have already been paid should be kept separate from ones you are still owed. With Accounts Payable, separate the bills your business has not yet paid from the ones you’ve already tackled.
- Stay on top of your 1099’s. You don’t want to worry about not being in 1099 compliance as you enter the new fiscal year. If you haven’t requested W-9 forms from your vendors and other independent contractors, make sure you do so immediately. Additionally, if you haven’t already done so in the past, we recommend requesting these forms as soon as your contractor begins their work, rather than after it’s been completed.
- Have your estimated tax liability reviewed. Finally, it is crucial that you have your CPA review your estimated tax liability for next year. Not only can they review your books and make sure you’ve accounted for all your business assets and liabilities, but they can also recognize tax-advantageous moves that you may miss.
We hope you can now go into the new fiscal year with some peace of mind. The clock is ticking, so set up your free consultation with our bookkeeping team as soon as possible. We look forward to assisting you and your business!