We have reached the end of another year and that means getting our year end paperwork and business documents in order for tax season. I know December is a very busy time for most businesses but the sooner you start the better, and some things are a must to do before the end of December.
Organize your receipts
Do you know where all your receipts are?
Even if you put all of your receipts together it may take time going through them, and remembering what they were for can sometimes get tricky . Check each one and make sure it is clearly marked what was purchased, what date and what the cost was.
Make sure you have a printed copy of all your bills, and be sure they are all paid up to date.
Go through each bill and highlight any entries that are both personal and business related. These are things like you electric bill, Internet bill, phone bill.
Be sure to have a printed copy of your bank statements. If there are any enteries that are not business related make sure to mark them as non-business.
Catch up on your bookkeeping
Bookkeeping can be time consuming and dull job but how else can you know how well your business is really doing? Up to date books can help you keep track of expenses, debts and how much your business is making. Not to mention how much easier it will make tax preparation for you and your CPA.
Don’t forget this important step.
It happens to all of us, we don’t have the business card with us or we use the wrong card to make a purchase. Items that are for both business and personal use or last minute purchases for items we didn’t know we needed.
Take a look through your personal accounts and statements for business expense made from personal accounts. Highlight the business expenses to make them stand out from your personal ones.
Use a different color highlighter for expenses that are split between business and personal.
Collect all outstanding payments
Follow up with customers to collect outstanding payments for the year. Send them a friendly reminder of the payment along with a copy of the invoice asking them to make the payment by a certain date.
Don’t Forget your Contractors
Remember 1099’s must be mailed by 11:59pm on January 31. Make sure you have up to date information for your contractors, if not send them each a W9 Form to fill out and return. Most contract employee’s will already have this information ready to send.h1>