Happy Holidays! Hope everyone is enjoying their time off in a very difficult to predict year. Rates were higher than many operators have seen in their professional careers. The stock market hit a multi year low and then hit multi year highs. At the same time, the geopolitical environment has caused many people reevaluate their supply chains (again). With all this uncertainty, it will likely be a very difficult audit and tax season. Business operators likely took steps to protect themselves against the environment, and it will be vital for their CPA’s to properly account for these activities, and also help their tax filer save them some money. Here is a top 10 list of items to get done before sending off your financials to your CPA –
- Review Financial Statements:
- Ensure that all financial statements, including the balance sheet and income statement, are up-to-date and accurate.
- Reconcile Bank Accounts:
- Reconcile all bank and credit card accounts to identify and resolve any discrepancies. This helps ensure that your financial records match actual transactions.
- Update Depreciation Schedules:
- Review and update depreciation schedules for fixed assets to reflect any changes during the year.
- Evaluate Outstanding Invoices:
- Review and follow up on any outstanding customer invoices. Consider sending reminders or making collection calls to improve cash flow.
- Manage Accounts Payable:
- Confirm that all bills are recorded and accounted for. Pay any outstanding invoices to maximize deductions for the current tax year.
- Inventory Check:
- If applicable, conduct a physical inventory check and reconcile it with the inventory records. Make any necessary adjustments.
- Check Payroll Records:
- Verify that payroll records are accurate and up-to-date. Ensure that all necessary payroll tax deposits have been made.
- Prepare for Tax Season:
- Work closely with tax professionals to gather necessary documents and ensure a smooth transition into tax season. This may include organizing receipts, expense reports, and other relevant documentation.
- Review Compliance and Regulations:
- Stay informed about any changes in tax laws, accounting standards, or other regulations that may impact your business. Ensure compliance with all relevant requirements.
- Backup and Archive Data:
- Regularly back up financial data and store it securely. Create archives for the current year, and make sure that previous years’ records are easily accessible for audit purposes.
Let Bookwise CFO help you get these items done so your CPA firm can fall back in love with you again, and puts your on the nice list for next year.