The end of the year is quickly approaching. Although it is a busy time of year, there are some important steps you can take to make sure your small business is in good shape for the new year.
- Financial Reports. This is a great time to run standard reports to see where your business is currently headed and how it compared to previous years. Review the Balance Sheet, Profit & Loss, and Cash Flow Statements to make sure everything looks accurate and that there is nothing unusual listed.
- Reconcile Accounts Payable and Accounts Receivable. You did the work for your customers this year but might have some unpaid invoices. By reviewing your Accounts Receivable and collecting those overdue payments, you can enter the new year with an increased cash flow and less outstanding invoices. While you are tying up loose ends, check your Accounts Payable to make sure you do not have any outstanding expenses as well.
- Verify Vendor Info. Another way to clean things up is to make sure you have up to date contact information and W-9’s on file for your vendors. Clear out any of the vendors that you no longer work with.
- Review Payroll and Benefits. It’s important to correct any issues with payroll before year end. Also, make sure to remember any taxable fringe benefits like third party sick pay on W-2’s.
While you are reviewing the items above, it’s a good idea to make a list of questions or concerns as you go to discuss with your tax advisor.
For more information, contact Katherine Little, General Ledger Specialist at Tronconi Segarra & Associates LLP at 716.633.1373 or klittle@tsacpa.com.
