Blog Layout

End of Year Bookkeeping Tips

Amanda McCormick • December 3, 2023

 Christmas is almost here!! …. yep, and so is YEAR END!


In regard to your business, what do those words make you feel?

·       Excited to start the new year and get new goals in place and plans in motion?

·       Filled with dread knowing tax time is coming?

·       Wondering what you should be doing to prepare for year end?


Here are 3 things to do before the end of the year to be prepared! 

 

1. Get ready for 1099s and W2s!

  Gather your list and check it twice! If you paid someone $600 or more for services this year, be ready to send them a 1099. Check to make sure you have their updated information and a current Certificate of Insurance showing their liability and work comp limits.

For employees, they are going to be eager for those W2s ASAP. If you can, send out a reminder asking them to update their address if there’s been any changes especially if you send out paper copies.


2. Take the first look at your year in review. Pull your financial statements. You want to look at your  Income Statement (aka Profit & Loss), Balance Sheet AND Statement of Cashflow. What does it look your bottom dollar will end up? Do you like what you see? If you’re sitting pretty comfortably in the black, take a look around and consider upgrading or replacing any aging assets or office equipment that gave you a headache all year. If you haven’t already, reach out to your tax accountant for some last-minute tax strategy!


3. CELEBRATE your wins & learn from your losses. Take a moment to recognize all the hard work you put in this year and the progress you have made! What goals did you hit? Where did you fall short? Evaluate and learn so that next year can be even better!


  Blocking out a couple of hours to do this before the end of the year will help you to be more informed about your business and prepared for what’s ahead!


  Need help reviewing your numbers or pulling your information together? Book a complimentary introductory call with me now so that we can create a game plan for you!


BOOK YOUR CALL
local bookkeeper near me Peoria IL

How To Find The Right Bookkeeper For Your Business

By Amanda McCormick • February 4, 2024
It's time to hire a bookkeeper, but how do you know if they are a good fit?
business success tips bookkeeper near me

What Your Business Needs To Succeed In 2024

By Amanda McCormick • January 28, 2024
Get Ready For Your Best Year Yet
local bookkeeper

Three Financial Statements That Every Business Owner Needs To Understand

By Amanda McCormick • January 21, 2024
Financial statements are an essential part of small business finances. They provide a snapshot of a business’s financial health and performance. Each one provides valuable information that can be used to make decisions about the future of the business. Understanding these statements is essential for any business owner who wants to make informed decisions about their finances. What are financial statements? Financial statements summarize a business's financial performance over a specific period, such as a quarter or a year. These statements include three direct reports: the income statement, the balance sheet, and the cash flow statement. 1. Balance sheet. The balance sheet expresses the financial position of a business. It shows three things about a business’s financial health: its assets, liabilities, and shareholder equity (or capital). When combined, these three elements make up the worth of the business for the period the balance sheet covers. 2. Income statement. Also called the Profit and Loss (P&L) statement, the income statement helps determine whether the business turned a profit or loss for each period of time. An income statement summarizes a business’s profitability and financial results for a period. It focuses on revenue and expenses. This financial report shows what it costs to create your products and services and keep the business running. It is handy to compare how a business’s revenues increase or decrease over multiple periods. 3. Cash flow statement. A cash flow statement measures how well cash flows through a business to keep operations running, pay employees, pay bills, and invest in opportunities. It is the third primary financial statement businesses must produce. Cash flow statements enable the business owners and partners to understand how a business runs: if there’s sense, process, and predictability in the operations, and if the business is on solid financial footing. Anyone can learn how to create and draw insights from a business’s financial reports. Investors, business owners, and managers need to understand the results and trends to drive the business successfully. Unsure of where you stand financially, we’d love to help! Schedule a call . We can help come up with a solution customized for your needs.
Share by: