As the year comes to a close, it’s the perfect time to wrap up your bookkeeping and get a head start on tax season. Here’s a quick checklist with details to help you stay organized:
1. Reconcile All Your Accounts
Compare your bank and credit card statements with your bookkeeping software to ensure all transactions are accurate and accounted for. Resolve any discrepancies now.
2. Organize All Your Receipts
Gather all receipts for business expenses, both physical and digital. Use a scanner or app to digitize them and store them in a cloud-based folder for easy access.
3. Review Invoices
Check for unpaid invoices and send reminders to clients. This helps improve your year-end cash flow and ensures you don’t leave money on the table.
4. Run Financial Reports
Generate your Profit & Loss, Balance Sheet, and Cash Flow statements to get a comprehensive overview of your business’s financial health. These reports are essential for tax prep.
5. Gather Tax Documents
Collect forms like W-2s for employees, 1099s for contractors, and records of deductible expenses like mileage, utilities, and office supplies.
6. Prepare for Next Year
Use insights from this year’s data to set financial goals, create a budget, and plan for growth in 2025.
Knocking these tasks out now will make tax season a breeze and ensure you start the new year stress-free.
Need help? Please email us at Ploomba@placcountingsolutions.com
