What you do at the end of the year can help set up your business for success for the new year. The holiday season can make the end of the year a stressful time for many business owners. To help you, 365BOOKSPRO created this Business Year-end Tax Preparation Checklist that can help you focus on the necessary tasks and allow your business to make a smooth and well-ordered transition into 2020.
To Start the New Year Right, Be Organized to Be Prepared
- Organize Business Receipts. Find all receipts for deductions you will claim on your tax return.
- Count Inventory. For those who deal with physical inventory, updating your inventory balances will help you determine how much inventory you have available, how much has been damaged, stolen, etc.
- Document your Fixed Assets. Make a record of large purchases such as office equipment, vehicles, furniture, computers/printers, etc. Also, take note if any of these fixed assets were either sold or disposed of in the past year.
- Ensure that your Bank Account(s) are reconciled. Verify all your transactions were posted correctly and fix any outstanding mistakes.
- Have your year-end financial reports Annual reports will provide you a more fuller understanding of your assets, liabilities, and equities and show you the bigger picture of your business performance.
Collect the Required Documents
- Collect all necessary employee information including W4 forms. Organizing this information now is best to prepare the required tax forms for payroll tax filings.
- Confirm that you have W9s on file for all contractors. Make sure you are in possession of a W-9 form on file for any contractors or vendors that you paid any amount $600 or more this year.
- Ensure W-2’s and 1099’s have been prepared properly. If they are ready to send, you can prevent delays that may cause costly penalties.
Reflect on Your 2019 Goals and Start Planning Goals for the New Year
- Evaluate your 2019 Financial Performance. carefully study and review your year-end financial reports. While you should identify and take note of any weak areas or ongoing challenges you’d like to improve next year, you should also identify successful practices that you would like to replicate,
- Strategize for the next year. With these above steps completed, you can put yourself in a more forward-looking position. Be proactive and update your business plan to strengthen and grow your business for the new year.
Whether it is reflecting on the year’s finances, recognizing which documents need to be prepared or examining future goals–this checklist should help you start the new year on the right path! For more information on this checklist, get in touch with one of our tax preparation specialists in National Harbor, MD.