Year-End Small Business Bookkeeping Tips
The holidays are always busy for small business owners! This can be a great thing, but can also be stressful preparing for year-end and starting on tax planning. Here are five year-end bookkeeping tips to help close out your small business bookkeeping for the year:
- Review your personal expenses. This may seem contradictory to our subject “small business bookkeeping” tips, yet if you own a sole proprietorship or partnership, oftentimes your business expenses end up combining accidentally with your personal expenses. Many taxpayers pay additional taxes unnecessarily because they overlook business expenses paid from their personal funds. So, gather those receipts and check duplicates, and log those into your company books!
- Review your financial ledgers. Be sure all bank and credit card accounts have been reconciled. Ensure the accuracy of your accounts receivable and accounts payable.
- Write off bad debt. If you’ve been unable to collect on bad debt, write this off in your books now to avoid paying additional taxes on money you may never see.
- Schedule a professional tax planning session before year-end. Your tax professional may be able to reduce your tax burden by suggesting additional year-end strategies based on your profit. Year-end tends to be a great time to purchase that additional equipment you’ve been eyeing up or donating to your favorite charity!
- Hire a bookkeeper. If the stress of small business bookkeeping and number-crunching is taking time away from doing what you love, hire a bookkeeper. We’re here to help you start on track and focus on your small business. To request a free bookkeeping consultation, click here!
Happy Holidays!!