The end of the year is a busy time for businesses. Most of business owners probably start preparing for end of year accounting procedures. We are here for you. Let’s organize your business and wrap up 2021.
Simple Checklist for Year End Accounting
First of all, your accounting books should be organized. Record up to date business transactions to jumping into closing book.
- Gather necessary documents.
- Organize business receipts to monthly folder.
- Reconcile bank accounts and credit cards.
- Review financial statements.
- Review Account payable and Account Receivable.
- Collect outstanding invoices from customers or Remind them.
- Payoff bills to vendors.
- Account for inventory.
- Make necessary transaction adjustments.
- Backup information in a secure place.
Once you complete above, it is a time to check with your accountant to see if there are any additional documents or procedures need for the upcoming year 2022 and tax season.
Two more important things:
- Make sure personnel information with employees. You must update employee information such as address to send their Form W-2 (wage report).
- Contact to independent contractors if business paid them over $600 during 2021. If you do not see tax ID, ask them to fill put Form W-9 to collect necessary information. So, you are ready to issue Form 1099-NEC.