Before you know it, the holidays will be here, filling up the calendar with more to-dos and festivities. Don’t put off the year-end planning details of bank reconciliations and estimated tax payments until the last minute. We advise all business owners to provide a clean version of your financial records to your accountant on or before November 15. Save yourself the stress and start the cleanup now!
Here are some bookkeeping tips and questions to ask yourself:
Are my bank and credit card reconciliations current?
If not, get them done. Then, check to see if there are any uncleared transactions that are duplicates or accidents that should be deleted. If there is an uncleared item that is legit, make a call to see if the check was lost and send a duplicate.
Am I making money?
After getting your reconciliations up to date, prepare and review your profit and loss.
- Does your bottom line make sense? Where are you spending your profits?
- How much additional income/profit are you expecting for the year?
What are my sales tax obligations?
Determine your obligations now to avoid serious penalties later.
Do I have any outstanding tax payments due?
Plan on paying one-third of your net profit to Uncle Sam for income taxes. How much have you already paid? How much more do you need? Make sure you have set aside enough cash to make your payment.
What is my projected cash flow for year-end 2018?
Take a look at last year. Are you cash rich or starved at the end of the year? If you are cash-starved, plan now by rethinking your holiday party or offer clients discounts to pay up-front. Better to plan now so you don’t have that sick feeling when the tax bill arrives.
Need help getting these answers, or with your bookkeeping business plan? We have a QuickBooks Assessment tool to check your bookkeeping or we can help you review and/or perform the cleanup for you! I am Kathy Dise from BudgetEase and I’m here to make YOU more profitable. For more small business bookkeeping tips, email me at firstname.lastname@example.org.