Bookkeeping Tasks to Prep for Tax Season
As the end of the year approaches, now is the ideal time to finalize your bookkeeping and prepare for the upcoming tax season.
To help you stay on track, here's a handy checklist:
Reconcile All Your Accounts: Compare your bookkeeping records with your bank and credit card statements. Ensure every transaction is accurate and accounted for and resolve any inconsistencies before moving forward.
Organize Your Receipts: Gather all business-related receipts, whether physical or digital. Use a scanning tool or mobile app to digitize these documents and save them in a cloud-based folder for easy and secure access.
Review Invoices: Identify any outstanding invoices and follow up with clients for payments. Doing so will boost your year-end cash flow and prevent any revenue from being overlooked.
Run Financial Reports: Generate critical financial reports, including your Profit & Loss statement, Balance Sheet, and Cash Flow statement. These documents provide a complete overview of your business's economic health and are crucial for accurate tax preparation.
Collect Tax Documents: Make sure you have all necessary tax-related documents, such as W-2 forms for employees, 1099 forms for contractors, and records of deductible expenses like mileage, office supplies, and utilities.
Plan for Next Year: Use this year’s financial data to set goals, draft a budget, and outline strategies for business growth in 2025.
Taking care of these tasks now will make the tax season much smoother and ensure you begin the new year with a clear head and organized finances.
Ready to get started?
Schedule your tax planning consultation with us today. Or contact our office to speak with a team member at 212-481-3490.