Top 3 Year-End Best Practices for Bookkeepers

December 20, 2019

As the end of the year approaches, bookkeepers for small to midsized businesses have to gather important transactional data that their business and clients will use to prepare for tax season, set next year’s goals and reflect on past performances.  This is a hectic process that involves a lot of numbers, something that might overwhelm even the most skilled bookkeeper.  Read on to find the 3 best ways you can accurately and efficiently accomplish your tasks as a bookkeeper at this hectic time of the fiscal year.

1) Consult with clients. The end of the year involves processing a lot of client information, such as total income for the year, any expenses and any financial support the client may be receiving.  Even if your business does not offer tax services, clients will eventually need the relevant information to acquire their returns.  At this meeting, you and the client should discuss any financial changes the client made during the year, as well as tax projections and business trends he should be aware of.  While this can be done remotely, a face-to-face meeting ensures a thorough assessment of the client’s information and is a good opportunity to clear up any discrepancies that may have arisen during the year or at the end.

2) Reconcile your books. To get started on preparing the financial information that the end of the year and tax season entails, it is best to have all your business’s financial information in one place.  Having to go through multiple books to get the information you need is time-consuming, and you can easily miss something you might need.  The QuickBooks app helps you reconcile your accounts in the fastest and easiest way possible, so you can just open up the app and have the information right in front of you.  You and any other bookkeepers will appreciate this, as well as your clients.

3) Prioritize your 1099s. If your company has hired any independent contractors, it is important to have them fill out a 1099 form before they start getting paid.  Instead of waiting until the very end of the year and then issuing 1099s in a panic because your contractors’ payment records are lost among other data, take care of it right away so you can stay in compliance and keep better track of the information you need.

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