Year End Bookkeeping Checklist
As the year winds down, it’s the perfect time to tidy up your books and get ahead for tax season. Let’s dive into a few simple steps you can take to close out the year on the right foot and set yourself up for success in 2025.
1. Reconcile Your Accounts
First things first, compare your bank and credit card statements with your bookkeeping records. This helps ensure all transactions are accurate and accounted for. If you spot any discrepancies, addressing them now will save you from future headaches.
2. Get Your Receipts in Order
Receipts can pile up quickly, can’t they? Gather all your business expense receipts, whether they’re physical or digital. Use a scanner or a handy app to digitize them, and then store everything in a cloud-based folder. This simple step will keep your records organized and easily accessible.
3. Review Outstanding Invoices
Take a moment to check for any unpaid invoices. A friendly reminder to clients can do wonders for improving your year-end cash flow. Plus, you’ll feel great knowing you’ve collected what’s owed to you.
4. Run Key Financial Reports
It’s time to generate your Profit & Loss Statement, Balance Sheet, and Cash Flow Statement. These reports give you a clear snapshot of your business’s financial health and are invaluable for tax preparation.
5. Gather Tax Documents
Start gathering the essentials, like W-2s for employees, 1099s for contractors, and records of deductible expenses such as mileage, utilities, and office supplies. Having everything in one place makes tax season a lot less stressful.
6. Plan Ahead for 2025
With the year’s data in hand, you can set new financial goals, create a budget, and outline your growth plans for 2025. A little forward planning now can lead to big rewards later.
Final Thoughts
By tackling these tasks before the clock strikes midnight on December 31, you’ll make tax season a breeze and start the new year feeling organized and confident.
Need help? Don’t hesitate to reach out. I’m here to ensure your books are in top shape. Cheers to a successful end of the year and an even brighter 2025!
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