Post written by Carie Randle, Accounting Manager
We survived another tax season! Woohoo! Now what?
We all know that tax season is the busiest time for CPA’s because they’re processing tax returns, but bookkeepers and accountants definitely share the load with processing, entering, adjusting, finalizing and generating all of the information that gets reported to CPA’s for tax returns.
So, on top of all the month-end duties (such as bank and credit card account reconciliations) and quarter-end duties (such as payroll tax returns), there are many other responsibilities that are time-sensitive when it comes to getting the books closed for the prior year and ready to turn over to the CPA.
That’s a load for just one company. Now think about the number of clients an outsourced bookkeeper might have and multiply those duties by the number of clients. Wow. So how do we do it? PRIORITIZE. Since closing the books is such a high priority in order to meet the tax day deadline, bookkeepers must prioritize duties accordingly and postpone those of lower priority. This is absolutely the only way we can survive.
Now that we survived another tax season, I thought I’d address a question that I’ve been asked numerous times… “What do you do now that tax season is over?”
We process and/or record all of the transactions that make up the year-end figures, but we do it daily, weekly or monthly (depending on the level of service that’s right for each business), so that there’s no scrounging for figures or information at year-end (or in April!).
Here are just a few examples of the transactions that we process and/or record from day-to-day:
- Customer payments
- Daily sales
- Bill payments
- Credit card purchases
- Payroll tax returns and payments
- Sales tax returns and payments
- Bank account reconciliation
- Credit card account reconciliation
- Journal entries
We also compile and provide a summary of bank and credit card account balances, accounts payable and accounts receivable weekly, and conduct monthly financial review meetings with clients.
In summary, what we do during tax season is annual work in addition to our day-to-day work, so the short answer to “What do you do now that tax season is over?” is….PRETTY MUCH EVERYTHING!
If you’re a business owner who is struggling with these day-to-day tasks, let us help you so that tax time is a breeze for you and your CPA next year!