“Now is the time to make a list and check it twice, but we’re not talking about Christmas.
Prepare for year-end and begin with documents the CPA is going to need in order to prepare the business tax return. If you’re not sure, send out an email. It’s typically the same list every year, but there may be things added or deleted from their master list.
Other things you can do are as follows:
Gather all information for 1099s (NEC & MISC). If you’re not sure if they get one, send that vendor an email with form W-9 which you can get off the IRS.GOV website.
If you bought new equipment this year, be sure to provide documentation for your fixed assets. Your CPA will need to calculate depreciation.
Take a hard look at your general ledger report. Does everything seem to be posted in the right account?
Below are just a few things to consider getting ready for tax time.
Year-end clean-up for a business owner involves organizing financial records and preparing essential documents for the CPA. Here’s a checklist to guide you through the process:
Year-end clean-up for a business owner involves organizing financial records and preparing essential documents for the CPA. Here’s a checklist to guide you through the process:
Financial Records Organization:
Review Financial Statements:
- Gather profit and loss statements, balance sheets, and cash flow statements for the year.
- Ensure accuracy and address any discrepancies.
Reconcile Accounts:
- Reconcile bank statements, credit card statements, and other financial accounts.
- Verify that all transactions are accurately recorded.
Categorize Expenses:
- Ensure all expenses are properly categorized for tax purposes.
- Separate personal and business expenses.
Inventory Check:
- If applicable, conduct a physical inventory count and reconcile it with recorded inventory levels.
Check Payroll Records:
- Ensure payroll records are accurate and up to date.
- Verify that all necessary payroll taxes have been paid.
Asset Depreciation:
- Review asset depreciation schedules and ensure they align with the correct tax guidelines.