Tax time is quickly approaching – are you ready?
Quality Accounting Solutions can help get your business books in order for your tax preparer. Before you hand over a mass of receipts and miscellaneous papers, follow these steps to get your piles in order to keep your tax preparer happy and decrease your stress and bills.
First - Get your business records in a logical order. Locate all your invoices, receipts and other supporting paperwork, including bank statements, loan balances, and tax records. Typically it is a good idea to organize these items by classification (utilities in one pile, suppliers in another, office supplies in another and so on.)
Then sub divide your piles into months, projects or alphabetical – whatever works best for your business.
Second - Evaluate your current accounting system. What is working for your business? What is not? Is there anything you want to change? Make sure you write these ideas down, so that you have them ready when you meet your tax preparer and review the books with your accountant.
- Are all accounts reconciled in QuickBooks?
- Are your Petty Cash and Cash drawers reconciled?
- Are the correct amounts due reflected in the Payroll & Sales Tax Liability accounts?
- Is the Inventory Balance correctly stated in QuickBooks?
- Double check your Accounts Receivable invoices.
- Every loan and large purchase should be recorded for the year and all Loan Balances should be updated in QuickBooks.
- Make sure you have complete W-9’s for all subcontractors, including current addresses (necessary to complete their 1099 form)
- Check out the “Year End Guide” in QuickBooks under “Help.”
If you have not done any accounting this year, get a plan in place for next year. Remember bookkeeping is only part of your accounting. In order to have a sufficient fiscal plan for your business, hire an accountant you trust to help you get your books set-up and running correctly, while they help you set-up quality business practices to help you meet your attainable goals. Proper bookkeeping and accounting throughout the year will keep your tax preparer happy, your bills lower and your business running smoothly.
If your current accounting methods need improvement or you are ready to hand the bookkeeping over to someone you trust, contact Quality Accounting Solutions. We can efficiently manage your bookkeeping and accounting all year long, so you can focus on running your business!
* Your tax preparer will thank you!