The end of the year is always an active and busy time for just about any business. In addition to getting sales made, products delivered and projects completed there is the process of closing the year-end accounting records for financial and income tax reporting.
There are some important steps that can be taken to manage the financial reporting process as well as prepare for the next round of taxes coming soon.
Take the First Step
The best first step might be to schedule a meeting with a client relationship manager at Price CPAs to talk through what is needed, what is available and what key dates need to be kept in mind to keep everything happening on the right schedule.
Reconciling is another key step. Making sure that all accounts are reconciled and current gives you a chance to address any questions or issues that the reconciling process might expose. It may take some time, but doing it and keeping it current reduces the amount of work needed to prepare accurate year-end reports and minimize unpleasant “surprises.”
Organizing is also very important. And, perhaps a little surprisingly, one of the best tools for this is last year’s tax return. Certainly there will be changes due to what has happened in your business over the last year, but there will be a lot of the same or similar information needed.
W-9’s are an issue for some businesses that use a lot of contract labor. The more that can be done to be sure all the right forms are available and you are ready for the related reporting helps make the year-end process more efficient.
Review Tax Paments
Reviewing quarterly tax payments to assure that the payments were made and at the right level is the next step. Knowing what has been paid, and what kind of year you have experienced will help plan for future payments.
Review Major Purchased
Reviewing property and equipment purchases made during the year is another area to explore. Knowing what purchases have been made, as well as any that might need to be made prior to the end of the year, is important for financial reporting and tax planning purposes.
And, the last point to mention here is to establish a timeline for getting year-end reporting done and preparing for the next tax deadline. It seems that too many business let financial reporting and tax deadlines surprise them, requiring more anxiety-driven work and extended workdays.
Price CPAs has been using advance preparation to help many of our clients improve their financial experience ever since we started in 1953. To learn about how we might be of service to you and your business, visit our website at www.pricecpas.com or call one of our team leaders at (615) 385-0686.
Most importantly, communicating with your accounting and tax professional prior to year-end is the best choice you can make to prevent unwanted surprises that could negatively impact your business and its stakeholders.