Time to Catch Up

by Marie Neubauer

We are just a few weeks into the 4th quarter of 2020!  So close to closing out the year. YAY! But wait….are you up-to-date on your bookkeeping? Now is a good time to catch up and review your books to avoid any year end surprises. 

I’m not a fan of surprises. I’m not good at surprising either.  This is why my husband had a surprise 31st birthday party. Who throws a surprise 31st birthday party? Me. Why? Because I accidentally text Jared that I needed help throwing him a party for his 30th.  It was supposed to go to his best friend.  Oops. 

Who else does NOT need anymore bombshells in 2020? Not me.  I compiled a to-do checklist that will help get your books in order before the end of the year. 

  • Check to make sure all of your accounts are reconciled and up-to-date.  This includes checking and savings accounts, credits cards and all loans. 
  • Clean up your Aging Report.  Now is the time to collect any past due accounts. 
  • Verify your 1099 information.  If you paid someone over $600 that is not on your payroll, you may need to issue a 1099.  Use the W-9 Form to request this information.
  • Verify that your payroll information is accurate and complete for current and former 2020 employees to avoid any delays or issues on W-2 forms. 
  • Review and check that all income and expenses are categorized properly.
  • Run a year to year Profit and Loss comparison report and review to see what changes have occurred in your business expenses and income this year.  This is a good time to think about how you can increase profits and where you can cut expenses.
  • Consider meeting with your CPA to review your income and expenses to see if you need to make any capital purchases or reduce expenses somewhere before the end of the year.
  • Review your insurance to make sure you are properly covered.  If you have had any big life changes like a marriage, a baby, a death, large changes in your income, expenses, payroll, moved, sold and/or bought a property you should call your agent and have a meeting.
  • Start planning for the New Year!   What can you do differently next year to be more profitable and efficient? 

If you need help with any of your bookkeeping needs, contact us!  We would be glad to help. Our goal is to provide affordable bookkeeping with a high level of integrity. Your success makes us a success. 

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