There’s something very satisfying about turning our calendars to January. It always feels like a fresh start. We resolve to develop new, better ways of using our work and leisure time. We reflect on what we accomplished in the past year, and we look forward to achieving even more in the next year.
But sometimes we have a nagging feeling that we forgot something. And it often has to do with our finances, both personal and professional.
Where to start? Depending on how conscientiously you entered transactions and ran reports, you might need to set some extra time aside in the midst of your other year-end and holiday-related commitments.
For example, did you instruct QuickBooks to “close your books” at the end of the year? QuickBooks will automatically make year-end adjustments if you entered December 31 as a closing date in Preferences. However, it’s not required, and there are both advantages and disadvantages to doing so. We can help you decide if this is the best decision for your company.
If you set a closing date of December 31 in QuickBooks’ Preferences, you need to prepare your company file for this deadline in advance. We can help you get ready.
If anyone else on your staff works in QuickBooks, make sure they know that you’re trying to wrap up the year. If they’re holding anything back because of questions and comments, now’s the time to confer with you.
Taxes and Accounts
You may have already been working with your tax consultant on tax planning for the 2015 tax year. But if you haven’t, and you haven’t been doing so on your own, you need to look at your incoming and outgoing funds for the year because there are still some things you can take advantage of. I would recommend you making an appointment with your tax consultant immediately.
Talk to us about your tax situation if you think this may be necessary. We can create some reports and advise you on any situations where you might want to put off – or accelerate – some actions. Is your income running high and your offsetting expenses low?
Odds and Ends
How do you back up your QuickBooks company file? On a local drive or in the cloud? How often do you do this? Archiving your data is critical. Think about what would happen if you lost your customer records or a month’s worth of transactions or multiple payments. This is an area where we can provide guidance. Is there a better, safer way to ensure data security? Are there special backup activities you should do at year’s end?
And when you think you’ve entered everything but payments or transactions that may come in at the last minute (unless you’re going to defer these until 2016), all accounts should be reconciled. QuickBooks makes it easy to do this regularly
You should do a final reconciliation of all accounts for 2015.
If you didn’t utilize QB and finish up the accounting in 2015 and you are feeling the pain, Don’t panic~ make a new resolution for 2016. We can help you ring in the New Year on a more confident note.