Bookkeeping Tasks to Prep for Tax Season

As the year comes to a close, it’s the perfect time to wrap up your bookkeeping and get a head start on tax season. Here’s a quick checklist with details to help you stay organized:

1. Reconcile All Your Accounts 
   • Compare your bank and credit card statements with your bookkeeping software to ensure all transactions are accurate and accounted for. Resolve any discrepancies now.
2. Organize All Your Receipts 
   • Gather all receipts for business expenses, both physical and digital. Use a scanner or app to digitize them and store them in a cloud-based folder for easy access.
3. Review Invoices 
   • Check for unpaid invoices and send reminders to clients. This helps improve your year-end cash flow and ensures you don’t leave money on the table.
4. Run Financial Reports
   • Generate your Profit & Loss, Balance Sheet, and Cash Flow statements to get a comprehensive overview of your business’s financial health. These reports are essential for tax prep.
5. Gather Tax Documents 
   • Collect forms like W-2s for employees, 1099s for contractors, and records of deductible expenses like mileage, utilities, and office supplies.
6. Prepare for Next Year
   • Use insights from this year’s data to set financial goals, create a budget, and plan for growth in 2025.

Knocking these tasks out now will make tax season a breeze and ensure you start the new year stress-free.

Need help? Contact us today, and we’ll make sure your books are in top shape! Cheers to a successful end of the year!