The last months of the year is a busy time for most businesses. Not just with the approaching holiday season, but preparing for year end as well. To help you get to the finish line, here are some things you can do now to make the end of the year easier.
1) Reconcile
If you haven’t already caught up, now is the time! Reconciliation puts a spotlight on accidental double entries and other errors. Make your life and your CPA’s life easier so you can address any potential write-offs or other items for your tax strategy. Reconcile those bank accounts!
2) Determine Costs
As part of your year-end planning, decide how you are going to fund your accountant’s:
- Recommendations on retirement plan contributions
- Estimates of tax liability at year end
- Other suggestions
3) Bonuses
Decide how much in bonuses or distributions you will be handing out.
- Don’t forget to calculate the tax withholding on each.
- Be sure to discuss the distribution plans with both your CPA and your banker to understand the implications on your taxable income and your credit.
4) Cashflow
Review your outstanding payments from customers and to vendors.
- Run an Accounts Receivable aging to follow up on those past due clients. Address any write-offs for bad debts that aren’t worth chasing. And note in projected income you will collect by year end.
- Review the Accounts Payable for the same time period. Decide what payments you will send out before year end, and which items can wait.
- Cross-referencing these AR and AP items will help establish your true cash position and set you up for the start of 2017.
5) Prep Your 1099s
- Tidy up your books for subcontractors and make sure you have a W-9 form completed for them.
- Now is the time to track down any missing information on 1099 forms.
If you need any help cleaning up your accounts, getting caught up on your reconciliation or running QuickBooks reports, we are here to help!