By Analytix Editorial Team
December is a good time to take stock and assess your bookkeeping to-do list in preparation for your 2019 tax filings. However, the calendar year-end can be a busy time with other business management chores. Here are some practical year-end bookkeeping tips that can help streamline the financials and help businesses hit the ground running in 2019:
Whether the business uses software or manual methods, reconciling is one of the first steps to ensuring bookkeeping is on track. Keeping a checklist when reconciling can help ensure nothing is overlooked, including any loans or lines of credit taken, payroll obligations, etc. in addition to bank and credit card accounts. Not reconciling can set back your tax filing process in the coming year.
Most businesses will maintain an assets account or registry, which must be reviewed before moving into the new year. Look out for entries that do not belong to the assets category and reassign them as needed. The year end is a good time to highlight transactions that seem unclear, and mark them for a consultation with the CPA before the new year rolls in.
A year-end review of Accounts Receivable and Accounts Payable can help reveal any errors or issues that went unnoticed in the preceding months. It is also a convenient time to collect old and overdue payments. Analyze any uncollected items to determine if collection is no longer feasible. If so, write off the items as bad debt for the business. Furthermore, identify any inaccuracies and, most importantly, take action when needed. For example, send reminders, follow-up reminders, etc.
If your business uses contractors, December is a good time to ensure payments are in order because the deadline for providing contractors with Form 1099 is January 31. Similarly, W-9 forms need to be filled out by vendors.
Healthy Business Financials: The Professional Way
For professional businesses, including CPA firms specializing in client bookkeeping and accounting, a passion and love for entrepreneurship is often the business’s foundation. However, every successful business needs a rock-solid base to operate from, in this case, healthy, reliable financials. Streamlined and uninterrupted operations are only possible when there is a steady stream of income. Unlike most businesses that rely on professionals, a CPA firm is equipped to do its own accounting. Yet, even for them, professional help can prove to be beneficial in more than one way:
Analytix Solutions offers customized solutions for businesses, ranging from accounting and bookkeeping services to more complex requirements. For more information on how we can assist you in preparing for year end, call us at 781-503-9004 or email us at [email protected]