Bookkeeping and Accounting Tasks to Complete Before the End of the Year

Posted On November 30, 2022

The last few weeks of the year are extremely busy for shop owners. Year-end bookkeeping and accounting responsibilities are often put off until after the dust settles after tax season and the bustle of the holiday shopping season. Hire Phoenix tax preparation services professionals to help determine what will work best for you.

1. Finish off your paperwork and get caught up

To begin, check that your records are current. It’s possible to achieve this by:

Invoices and other expenses must be recorded even if payment has not yet been received.

Examining financial documents like bank and credit card statements for discrepancies. Keeping track of money spent out of pocket. Reliable financial statements depend on accurate record-keeping. If you’re several months or years behind on your books, you’re in good company; 25% of business owners are in the same boat.

You may put your past behind you and look to the future with the help of Xendoo’s online bookkeepers, who offer catch-up bookkeeping services.

2. Acquire All Required Documents

In order to close the books and file your small company taxes once January rolls around, your accountant will need you to fill out a few pieces of paperwork. You should get them back as quickly as possible to make sure the new year goes off without a hitch.

You can find typical forms and their due dates below.

• FORM W-2
• FORM W-9
• SCHEDULE K-1
• FORM 1099-K

3. Follow Up on Overdue Invoices

Examine your overdue invoices to determine how much money you owe. Contact any clients who have not yet paid so that you can close the books for the year without delay.

4. Calculate Stock Values

If your company keeps stock, you should count it at the end of the year to ensure the numbers add up to what you have on your Balance Sheet and in your books. This analysis will shed light on the handling of losses and waste, and it will aid in the elimination of counting and receiving errors.

Managing stock and fulfilling orders could be made easier with the help of inventory management software.

5. Take a Look at Your Statements

After you or your bookkeeper have finished the books, you should check the financial statements to ensure the numbers add up.

It’s also a good opportunity to assess your company’s development over the past 12 months. Profits: did they rise predictably over time? Can you see how your expenses affect your revenue? Looking at your financial statements, you can see if you’re on track to achieve your goals, make projections, and plan for the future.