Accounting Year End Checklist
As 2020 comes to an end, it is essential for business owners to close out the books in preparation for filing taxes and forecasting the health of the organization. Consultance Accounting has created an Accounting Year End Checklist to help you through this overwhelming process. Whether your company uses an Accounting Specialist, outsources accounting, or does most of the bookkeeping in house, this Accounting End of Year Checklist for Businesses can help.
Year End Accounting Checklist for Businesses
- Gather financial statements: Financial statements are extremely important because they give you a glimpse of where your business stands financially. They also show past and current finances forecasting the financial future. Easily accessible financial statements that you will need include: Income statement or Profit & Loss statement, Statement of Cash Flows, and Balance sheet.
- Gather and organize your receipts: An easy way to do this is by using a software solution, which syncs with credit card or bank account and QuickBooks. Consultance Accounting is a technology-based accounting firm with the vision and expertise to deliver streamlined, user-friendly, and cost-effective accounting services.
- Collect past due invoices: Try to collect all the money that customers owe to your business prior to year-end. Send out payment reminders, establish a payment plan, and document the payment process.
- Check payroll: make sure all payroll records are accurate and up to date in the books.
- Collect W-4s and W-9s: Verify you have Form W-4 for each employee you hired during the year so you can give them W-2s. Verify you have W9s for independent contractors or vendors who were paid more than $600 throughout the year so you can distribute 1099-MISC forms in January.
- Reconcile bank accounts and credit cards: Do financial statements match up with bank and credit card accounts, and year-end statements? To make it easier, Consultance Accounting can provide you with the right accounting software technology platform to achieve your goals with maximum efficiency.
- Take inventory: Get an accurate count of the materials and supplies on hand if business stores inventory. Complete an inventory check before year-end if business has physical inventory and match inventory totals to balance sheet.
- Back up all information: The last thing you want is to lose all the important accounting data from the year. Make sure you have a reliable backup system.
- Create a budget for the following year: Review statements from the current year to see a pattern in what needs to be budgeted and planned for in the next year.
- Print and mail out tax forms: If the business has a fiscal year coinciding with the calendar year, forms must be printed and mailed by a certain time. If the fiscal year does not coincide with the calendar year, some of the same deadlines may apply, but double-check with your accountant to be sure.
- Print out end-of-year statements: Keep electronic files and hard copies.
- Give necessary data to accountant: Schedule a meeting and to review finances.
Consultance Accounting Services utilizes the most reliable technology platforms, proven processes, and extremely knowledgeable accounting professionals to assist small and medium sized businesses achieve their goals, improve productivity, and increase profitability.