The end of the year is just around the corner, which means there are a few last-minute bookkeeping tasks to wrap up before January is upon us.
No matter how diligent you are with your bookkeeping throughout the year, it’s important to finish off the year strong. Getting these tasks off your plate will help you set your business up for success for the new year, and give you a blank slate to start out with in your books.
End of Year Bookkeeping To-Do’s
Here are the five bookkeeping tasks I recommend you focus your time and energy on in the next few weeks:
- Look into getting your bank charges waived. Per the new executive order, bank fees classified as “junk fees” are supposed to be restricted or removed. Read over the fine print in your bank statements and call your bank so you don’t have to pay these expensive fees.
- Contractors paid over $600 need 1099s. Anyone who’s working for you but isn’t a direct employee is going to need to sign one of these. These forms are due January 31st, so there’s still time, but it’s best to get it out of the way now. Hop onto Quickbooks to process your 1099s quickly and fuss-free.
- Close your books after reconciliation by December 31. Catch up now on updating your books and reconciling your accounts, so you can officially close your books and start fresh in the new year. This is a good accounting practice, and it ensures your finances are accurate and current.
- Double check that your loans and assets are on the books. Although you might be more nitpicky about the day-to-day cash coming in and out of your business, sometimes it’s bigger values that fall through the cracks. Take a peek at your financial statements, just to make sure all of your loans and larger assets are accounted for.
- Make an appointment with your CPA and tax preparer now! Accountants will get busy during the tax season, so schedule a meeting now to make sure you’re on their calendar well before your 2022 taxes are due in April.
Checking in on Business Performance
December is the best time to review and assess your books from the past year. Do it before January hits so you’re well-prepared for the new year!
This is a super important part of the bookkeeping process, because it allows you to keep track of your business finances, see where you were making and spending money throughout the year, and gives you an understanding of how you might be able to increase your revenue in the future.
If you made any financial goals for this year, now is the time to check in and see how you did. Did you make your sales numbers? Did you cut back on your expenses? What things turned out better than you expected, and what financial goals are you behind on?
After analyzing your 2022 performance, you’ll be able to determine what goals you want to make for the upcoming year. Try to capitalize on what you did well the past year so you can build on your success. Did you do a good job of booking more clients in recent months? Make a goal to do the same–but add a few more clients to the tally.
Be sure your goals are specific, so you can measure them, and actually write them down in a place you’ll remember, so you can refer back to them and hold yourself accountable.
Staying on Track Throughout the Year
To make sure you don’t have piles of bookkeeping to take care of at the end of the year, it’s a good idea to keep on top of your finances each month, with a bigger check-in each quarter, and a final wrap-up at the year’s end.
If you find yourself scrambling during this time of the year, it might be time to hire a bookkeeper to help you stay on track monthly. The end of year tax season shouldn’t cause you stress if you’re managing your books properly in the first 11 months of the year! For bookkeeping support, fill out our contact form or send us a message, and we’d be happy to help.
