It’s that time of the year when you have to compile your financial business information, look back at the numbers, make reports, and close your books for 2019.
End of the year planning is a hectic time for any business, so here is a checklist of important items to ensure you’re closing your books correctly and efficiently:
- Review your profit and loss statement. Ensure all of your bank and credit card transactions are allocated correctly and updated in your accounting software.
- Collect any lender or vendor documents (such as W-9s) and organize them along with vendor invoices and purchase receipts.
- Reconcile all your bank accounts and credit cards to ensure all balances match what has been recorded on the books.
- Confirm your employee names, addresses, and social security numbers are accurate. Additionally, confirm your employer FEIN with your payroll processor is correct. The IRS penalty is up to $270 for each W2 that has a missing or incorrect social security number or FEIN.
- If your company offers any fringe benefits, such as personal car use for a company vehicle or paid health insurance for an S corp, please be sure to report them to your payroll processor so the amount is reported in the employee’s W2.
- Be sure to process any year-end bonus checks by 12/27/2019.
- Take inventory of products and services and compare those numbers to previous years to get a clear picture of the activity. Review your final numbers and start budgeting for 2020. The sooner you have a clear vision, the sooner you and your team can go execute.
This may seem like a lot of work, but you can optimize your time by hiring professionals to take care of your accounting needs. They can also help you get ready for tax season, while you focus on running the rest of your business.