As the end of the year approaches, it’s time to get some of your finances in order. You still have plenty of time until tax season, but closing out the year organized and ahead is critical for success, as well as helping ease the tax strain of spring. Today we’re sharing some of our most important accounting items to tackle before we enter 2018.
List of 5 End-of-Year Accounting To-Dos
- Prep W2 and 1099 Tax Forms Early: Start preparing your payroll compliance documents for employees and contractors right away, and get them sent out no later than January 31st. This will help keep your finances accounted for as well as keep you in compliance with the IRS.
- Collect All Payments: If you have outstanding invoices, uncashed checks, or invoices not yet sent, now is the time to reissue or follow up. Make it a goal to close out all accounts receivable by the end of the year so you can begin preparing for tax season, as well as bringing in all your company deserves.
- Assess Tax Preparation: Don’t wait until March to begin preparing for your income tax. Small businesses in particular can be hit hard by fines and taxes if they aren’t prepared. If you aren’t a seasoned tax professional, then find one to assist you – and quick. Avoid expensive surprises and take advantage of savings and incentives.
- Financial Runway: How much money do you actually have? What are you financial goals for 2018? A shareholders or board meeting to prepare for 2018 can help you set the budget, prepare financial goals, plan for large purchases or hires, and just generally get everyone on the same page for the company’s future.
- Top Good, Top Bad: Take this opportunity at the end of the year to take a look at 2017. Determine, with a team if necessary, your top “good” accomplishment and your top “bad” misstep or failure. How did they happen? What can you do to encourage or prevent them in the future? Does your plan for 2018 factor in these realities? Some reflection can really set up your accounting to succeed in 2018.
Finally, if you are feeling a little rusty, unfulfilled, overwhelmed, or looking to expand your accounting skills, consider setting accounting education goals for 2018 with Universal Accounting School. We can help you get where you want to go.