It’s that time of year again! The holidays are just around the corner and before you know it, it will be time to ring in the new year. For small business owners, that means it’s also time to get your accounting in order. This can be a daunting task, but we’re here to help. Here’s a quick checklist to help you get started.
1. Review your financial statements from the past year. This will give you a good starting point for understanding where your business stands financially. Are there any areas that need improvement? Are there any areas of concern? Now is the time to address them.
2. Prepare your tax return. This is probably the most important item on this list. Make sure you have all the necessary forms and documents in order so that you can file your return on time. If you need help, there are plenty of resources available, including tax software and online calculators. The best option is to use a qualified tax preparer who has spent the year keeping up on tax issue and help you pay as little in tax as legally possible.
3. Review your insurance coverage.Businesses change from year to year, so it’s important to make sure that your insurance coverage is still adequate. Does your property insurance still cover the replacement value of your assets? Does your liability insurance still protect you from potential lawsuits? If not, now is the time to make changes. We partner with a couple of insurance agents who would be happy to review your insurance coverage and check on the adequacy of coverage and prices.
4. Evaluate your debt situation. Take a look at any outstanding loans or lines of credit. Are the terms still favourable? Is there a better option out there? Now is a good time to shop around and see if you can get a better deal elsewhere.
5. Update your bookkeeping records. This one is often overlooked, and it really should be #1 on this list, but it’s important to keep your books up-to-date so that you can track your progress from year to year. Don’t like doing the bookkeeping? Great! Our staff at Bookkeeping Made Simple can help you get your books caught up, up to date, and maintained throughout the year.
Getting your accounting in order may not be the most fun way to spend the end of the year, but it’s an essential task for small business owners nonetheless. By following this checklist, you can ensure that you’re ready for whatever next year throws your way—financial challenges and opportunities included!
Please give us a call if we can help you with your end of the year tasks! 801-692-0032
Donna Harris holds a BSci in Accounting and an MBA, and is the owner of Bookkeeping Made Simple.
Donna Harris, BSci Accounting, MBA, founded Bookkeeping Made Simple with the understanding that small businesses is the heart of the American economy. After offering to do books for a friend who said he didn't have enough work to keep someone in the office 20 hours a week, she recognized the need for an efficient, online system. She has 20 years of bookkeeping and accounting experience and is excited to help small business owners achieve their goals. She enjoys spending time with her family and traveling whenever possible. She also loves reading, hiking, camping, cooking, yoga, and fitness. A huge believer in lifelong education, she is currently working on her master's in Accounting.