9 Year-End Accounting Tips for Your Small Business

Somehow, even though we know December 31st comes every year, we aren’t always as prepared as we should be for year-end. Here are 9 year-end accounting tips to make sure you and your small business are on track.

1)  Schedule an appointment with your CPA or tax preparer now to discuss year-end tax planning items. (Many items will have deadlines that you won't want to miss!)

2)  Do you maintain an inventory? If yes, schedule a date close to year-end to count all your inventory items.

3)  Confirm that all your payroll tax and sales tax payments/deposits for 2020 have been made.

4)  Employees vs. Independent Contractors: SRA Blog Contractors vs Employees

a.   Confirm they are properly classified.

b.   Obtain all information needed to issue employee W-2s and contractor 1099s.

5)  If you had any changes to your company's legal structure in 2020, now is the time to compile all the documents related to those changes (subchapter-S status, tax-exempt status, etc.). IRS small businesses and self-employed business structures

6)  Review income and expenses to assure all items are properly coded in your chart of accounts or expense categories.

7)  Confirm that all your 2020 bank and credit card statements have been reconciled.

8)  Confirm all your sales and expenses are properly substantiated. Do you know where your invoices and receipts are? SRA Blog Valid Documentation for Business Expenses

9)  Fixed Assets: If you purchased any fixed assets (vehicles, equipment, property, etc.) in 2020, compile the invoice, trade-in information, and any other documents that affected the purchase price.





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