Post written by Angie Geer, Bean Counter | Proud Mama | Doting Wife | Cooking Enthusiast | PTA Volunteer (Sucker)
Whew…we’ve almost made it through another tax season! But just because tax season is coming to a close, that doesn’t mean that you can forget about your taxes for another year.
What do you need to do differently for 2017? Has your CPA given you a long to-do list to tidy up your books before they can process your returns?
Let’s get a headstart on our Spring cleaning so you can better maintain your books throughout the year.
Here are 7 Spring Cleaning Bookeeping To-Do’s:
Are all of these old bills truly outstanding or did you write checks for them rather than posting them through the Pay Bill function? We don’t want to double-book expenses and have an incorrect AP balance.
Are these open invoices still valid or did you post straight deposits rather than use the Receive Payment function? We don’t want to overstate revenue while at the same time having an incorrect AR balance.
3.Bank and Credit Card Accounts
Are all transactions entered? Reconciling the bank and credit card accounts is a great way to ensure everything is accounted for. It also allows you to easily find any issues that need to be cleaned up. If there are old items that haven’t cleared, you have issues that need to be resolved.
Did you properly account for your fixed assets or did that computer purchase go to office supplies? Be sure you follow the fixed asset guidelines supplied by your CPA. Also, don’t forget to put a clear description of the asset in your memo line so your CPA can classify properly.
Did you do a year-end inventory count? Did you post your adjustment? It’s important to have a correct ending inventory balance, which in turn will affect your cost of goods sold on your income statement.
Did you verify the year-end balance? You need to be sure your principal and interest breakout were properly accounted for throughout the year.
Did you process your 1099’s? Are you sure you got everyone? It’s important to collect W-9’s from each potential 1099 vendor as you begin your relationship. If your accounting software has a 1099 tracking feature…be sure to mark that vendor as a 1099 vendor.
Wow…that’s a lot to do! This cleanup process can really take a lot of your valuable time, especially if you’re tackling an entire year’s worth at once. Pretty overwhelming, huh?
It’s certainly beneficial to maintain your books throughout the year, but an even better option would be to explore outsourcing your bookkeeping. Your CPA would certainly appreciate being given a clean copy of your data file or set of financials.
At Virtual BeanCounters, we consistently monitor and maintain the items mentioned above to ensure an accurate account of your books. You have a business to run. Put your books in the hands of trusted professionals.
Thank you for taking the time to read the Virtual BeanCounters blog! If you have any questions about this post or any other questions, give us a call at 913.649.1040.