Business Matters Accounting Services, LLC. http://www.businessmattersaccounting.com Fri, 24 Dec 2010 01:24:42 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 Year End Bookkeeping http://www.businessmattersaccounting.com/glorias-first-post/ http://www.businessmattersaccounting.com/glorias-first-post/#comments Wed, 08 Dec 2010 22:03:27 +0000 admin http://66.147.244.197/~businge6/?p=78 Before kissing your sweetheart at midnight on New Year’s Eve, there may still be some accounting matters you want consider. It will take less time if your financial accounting system is organized and current. For some business owners, understanding your monthly financial statements is business as usual. However, it’s entirely possible that some business owners may, well…stall. If you find yourself in that position, let’s get going! Having your financial records organized and complete will take less time for preparing the tax return, and that saves money.

1. Bank Accounts? Reconcile them! Reconciling your financial records to your bank statements helps to ensure that you are recording all of the expenses paid and revenue received. This is also true for other transaction forms, such as credit cards and business expenses paid for with personal funds. Reconcile your financial records to statements.

2. Been Busy? No doubt this is the busiest time of year. So, first review your invoicing process – is it solid? It’s important to invoice for every good sold and service performed. If reviewing Accounts Receivables isn’t routine, this is a great time to review the unpaid balances and contact customers having outstanding balances. If you find too many customers are not paying timely, consider adding payment terms to your invoices. Finally, confirm all Accounts Receivables balances correctly reflect the amount owed. Differences are likely the result of a mistake in the financial records.

3. Where has the money gone? It’s wise to run a fine tooth comb through the expense section now. Correctly categorizing expenses is vital to analyzing your business on a regular basis, for sure. Given that some expenses are not deductible on the tax return, it will be more efficient to prepare that tax return if the expenses are categorized correctly now.

4. Speaking of tax return…Mileage. This is a nice deduction; however, it does require keeping a record of all your trips. Aside from your daily commute, add up the many other trips that have been taken for business purposes – watch it add up!

5. Hard work pays! It also requires a bit of paperwork in January. Ask employees to confirm their paystub information so their W2 forms are accurate. Do you use contractors for services? Review your files to confirm you have current IRS W9 forms. The information will be used to file a 1099 form for these contractors.

Check the above items off your list before the New Year’s Eve party, and be ready to wave goodbye to 2010…and similar to those personal resolutions, if you have not prepared a budget for 2011, let’s talk soon!

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