As the year draws to an end, you may be tempted to start closing things down. Holiday festivities and time with friends and family are beaconing. But before you dust your hands of 2021, here are a few items to take care of now, to make the beginning of the New Year a little easier.
Save your documents. Collect all important documents, statements, and reports. It’s a good idea to scan, save, and back everything up to ensure your records are safe and secure.
Review Accounts Payable. Check to see if there are any unpaid accounts that should be addressed so that the expense can be claimed on your 2021 tax returns. Make sure all business receipts and paid invoices are organized for quick reference.
Review Accounts Receivable. Address any missing invoices or outstanding collections. Also, if you haven’t already, make sure all bank and credit card statements are reconciled so that balances match.
Review forms. Check to make sure your 1099 forms are complete and up-to-date. Also, check the forms against your electronic records to prevent billing or payment issues in the New Year.
Begin preparing tax documents. If you issue W-2s, check that fringe benefits, withholdings, and bonuses are accurately recorded. Also, ask employees to confirm their address so that it is printed correctly on their tax documentation.
Review your financial statements. Year-end is a great time to review your past year and evaluate your company’s performance. Are your results where you thought they would be? How were profits? Does your balance sheet seem to be in good shape?
Gather your records for your CPA. Get a head start by scheduling a consultation with your CPA as soon as possible. Your CPA can help you finalize you 2021 taxes and strategize for 2022.
And, if you feel a little daunted by this list, contact My Staff Your Staff for help. We regularly take care of all of the items above for our clients, so they can skip the entire list and go right into the year-end celebrations! Enjoy the rest of 2021! My Staff Your Staff wishes you a happy holiday season and a very profitable New Year!