As the year draws to a close, it’s time to ensure your business is on solid financial ground for a stress-free tax season and a strategic leap into the upcoming year. Discover essential bookkeeping tips tailored for a successful year-end transition.
The late fall to early winter period can be particularly demanding for business leaders, especially when the holiday season plays a pivotal role in your financial success. Balancing day-to-day operations with the imperative to organize your books for the year’s end, including the preparation of numerous 1099 forms, can be a challenging task. Messy recordkeeping not only consumes valuable time but may also result in unexpected costs, such as additional hours billed by your CPA to untangle complex tax documents.
However, viewing this as an opportunity rather than a challenge can yield significant benefits. With meticulous financial data, you gain insights that can empower and fortify your business for the year ahead.
Essential Steps to Take:
1. Reviewing Systems and Data Integration:
Confirm the accuracy of integrated scheduling, bill-paying, and bookkeeping apps. Ensure seamless data mapping to prevent crucial information gaps.
2. Monthly Reconciliations:
Resolve any discrepancies promptly, alleviating the burden of additional year-end work.
3. Up-to-Date Records from External Sources:
Avoid the year-end scramble by proactively obtaining necessary documents from vendors and contractors.
Key Considerations for Vendors and Contractors:
- Form 1099-NEC: Ensure compliance with the IRS deadline of January 31, 2023, for reporting non-employee compensation.
- W-9 Forms: Confirm all vendors and independent contractors have up-to-date W-9 forms on file, including accurate mailing addresses.
- LLC Considerations: Understand the 1099-NEC requirements for LLCs, taking into account payment methods and thresholds.
4. Planning Ahead for Your Meeting with Your CPA:
Schedule a comprehensive meeting with your CPA to discuss not only the handoff of financial records but also to explore potential tax-saving strategies for the future.
5. Leveraging Outsourced Bookkeeping and Controller Services:
Consider engaging professional services for budgeting and forecasting, providing valuable insights into your business trajectory.
Strategic Metrics to Evaluate:
- Cost of Goods Sold
- Profit per Project
- Gross Profit Margin
Your bookkeeping and controller services provider can guide you in interpreting these metrics, offering unparalleled assistance in achieving your business goals.
At Supporting Strategies, our dedicated professionals leverage secure, cutting-edge technology and a proven process to deliver comprehensive bookkeeping and controller services. Ready to propel your business forward? Contact Supporting Strategies today.