Tips for Preparing for Year End

Tax season

The end of the year is fast approaching. For businesses, that means it’s time to begin thinking about reviewing records, reconciling accounts, and preparing to file tax returns. 

Here are some tips to help you get things in order.

Make Sure You Have Accurate Tax Information

Verify that your employees’ information is correct. That includes names, addresses, dates of birth, and Social Security numbers. Tell all employees to make sure that they have updated their information if they moved or changed their name in the past year. Errors in any of that data can create a problem when an employee needs to file a tax return.

If you pay contractors, freelancers, or consultants, you will probably have to issue each of them a Form 1099-MISC. Make sure that you have correct information so they receive accurate documentation in a timely manner.

Plan for Payroll

Holidays may affect your payroll schedule. If a holiday falls on a day when your employees would ordinarily get paid, plan ahead so you can get payroll done early and your workers can get paid the day before the holiday. If you plan to give your employees year-end bonuses, get the process started now so they will receive the funds before the holidays and so you can withhold taxes at the appropriate rates.

Go Through Your Records and Reconcile Them

Make sure your company’s financial records are up to date. Check that invoices that were paid have been marked correctly and that you know which invoices are still outstanding. If a customer has an overdue payment, get in touch to request payment by the end of the year. If you have made a payment for a product or service you have yet to receive, make sure your records accurately reflect that information. Reconcile payments with bank and credit card statements to be sure that everything matches up.

Audit Your Inventory

If your company sells products, check the inventory to make sure that what you have on hand matches your records. If you find a discrepancy, it may be due to a record-keeping error, theft, or another cause. You will have to figure out the source of the problem and how to address it.

Get Help with Taxes and Accounting

If you’re feeling overwhelmed by managing your company’s finances or don’t have as much time as you would like to devote to other responsibilities, DOAAR can help. Our team can assist you with tax preparation, bookkeeping, and other financial services.

Contact us today to learn more about how we can assist you.