No need to Fear Yearend When You Have a Plan

In this article we will be discussing ..

  • Bringing your books up to date
  • Organizing your purchase receipts
  • Reconciling your accounts

There’s no need to fear yearend when you have a plan in place. let’s look at how bookkeepers work with tax accountants. As bookkeepers, we bring your books up to date and keep them there. We categorize your transactions, reconcile your accounts, and make sure taxes are filed on time throughout the year. We keep your books clear of material errors and make sure bills and tax liabilities are paid and properly recorded. We are liaisons between you, the business owner, and your accounting firm.

Bookkeepers makes sure your tax liabilities and books are up to date

During the 4th quarter (October, November, December), we begin planning for yearend. At the end of each calendar year, we make sure anything that has been left pending has been resolved. We plan for 1099’s, W2’s, and other Federal and State mandatory filings. This is also the time of year when we review each account balance for adjustments or anything that needs to be addressed by the tax accountant.

Bring Your Books Up to Date

Bring your books up to date and manage the Banking transactions waiting to be matched or added into QuickBooks Online (QBO). If your books are not caught up, now’s the time to get them caught up. Catching up includes but are not limited to entering monthly transactions, checking categorizations, adding assets and liabilities on the books.

Organize Your Purchase Receipts

Organize your purchase receipts and match them to your QBO transactions. There are three ways to add purchase receipts. 1) Use the QuickBooks app to snap the receipts, it may take up to 30 minutes to load into the Receipt area of your QBO. 2) Drag and drop purchase receipts into the Receipts area, or 3) Create a unique email address and have them emailed and automatically added to the Receipts area. After adding the receipts and bills, your bookkeeper will match or add them to each transaction, whichever is needed while paying attention to avoid duplications.

Reconcile Your Bank and Credit Card Accounts

Reconciliations are important because it makes sure all transactions are entered into your QuickBooks Online. Any transactions that are outstanding may be duplicates, or in the wrong account and must be researched and resolved at this time.

Bookkeepers deliver important reports to your tax accountant so they may file your yearend taxes accurately and timely

Communication is key

Now is the time to prepare for tax season. If your accountant has not emailed you, it may be a good time for you to email them and ask what items you will need to provide them during tax season. Give a copy of the list to your bookkeeper so they have your books prepared.

Here’s a plan that you can implement today. This list can be used each month as well.

Work on the Banking transactions in your QuickBooks Online daily. make sure they have been categorized correctly.

Review your bank loans and vehicle financing to make sure the loans and payments are split between the interest portion of the payment which shows in the Profit and Loss report as interest expense, and the principal portion of the payment which pays down the loan, and is shown on the Balance Sheet report.

Review all purchases over $2,500 and determine if there are any assets that needs to recorded or expenses that needs to be capitalized.

Review payroll to make sure all transactions are posted posted correctly, including liability accounts.

Review all account balances for duplicates, errors, and if any adjustments are needed.

Reconcile the bank and credit card accounts, and other balance sheet accounts as needed.

Run a Balance Sheet, and a Profit and Loss report and review the account balances.