The end of the year and tax time can cause a lot of stress. Most business owners are focused on making sure you have everything in line. Instead of stressing to get your year-end process complete here are four things to keep in mind when you are trying to wrap up your bookkeeping.
Gather Your Financial Statements
Your financial statements are a crucial part of your business. They tell you where your business is financially. Financial statements allow you to see the past and current finances of your company. You are then able to estimate where your business will be in the future and be able to plan for the new year.
Complete Forms from Employees and Contractors
During your year you will most likely hire employees or contractors. When you hire employees, you have a lot of paperwork that goes along with the hiring process. You will want to make sure that the forms are prepared beforehand. The forms you will need are the W-2s form for employees and the 1099-NEC form for contractors or vendors. Preparing these forms allows for an easy time when hiring new people.
Collect Past Due Invoices
This one might take a bit more work, but it is worth it. Some customers just need a reminder or a little push. Make sure when you reach out to customers who have not paid an invoice you are understanding and patient. If you are dealing with a difficult customer who will not pay their invoices, you can set up a date for their invoice. Often this gives them the little push that they need in order to pay their invoice on time. Another thing you can do is put your customer on a payment plan. Sometimes customers cannot afford to pay their invoices all at once so a payment plan allows them to pay their invoice slowly instead of all at once.
Make a Plan for the New Year
Making a plan for the following year can allow you to set goals for your company and get your employees on board. Look back on the year before and see what is working and is not working. Use this time to look back on your records and make sure you know where you can spend more money and where you can save money. This is a great time to set up a budget for your company and to get your finances organized.
The end of the year can be a stressful time for business owners. You are caught up with all of the end of the year tasks that need completed for your company and sometimes finances get pushed to the side. These four tips can help you manage your end of the year bookkeeping. Also, at Harvest Tax & Accounting, we are here to help. We can keep track of all your finances for you so that you have one less thing to stress about. Contact us today to get started!