Year End Tasks

Posted on November 28, 2014 by

It is the goal of this column to answer questions about QuickBooks and how it is used in the REI arena. Know how to record transactions in the proper way and have your set of books in good shape when it comes time for taxes. It is our intention to do this by you the members submitting questions to, and getting answers here in this column.

Q: What are the important tasks I should be doing to prepare for Year End?

  1. There are a number of things to do for Year End and tax filing:
    1. Reconcile all bank statements and credit card accounts – you may have to reconcile the credit cards into January to capture all your December expenses
    2. Order w-2’s and 1099’s forms and envelopes
    3. Print W-2’s and 1099’s – W-2’s if you are using the Pay Roll module and 1099’s for all subcontractors (they should be set up as vendors and you must have their Social in order to print a 1099). You have until January30th to produce these.
    4. If you have inventory that you track in QuickBooks you must take a physical inventory and reconcile with book inventory for accuracy.
    5. Check with your CPA if he/she requires a full back up of your QuickBooks or an Accountant’s copy. If they take a full back up that they are going to make adjustments to you cannot work in your copy – if they are going to send you a printed copy of the adjustments for you to enter then you can continue working.
    6. An Accountant’s copy will ask for a cutoff date for the accountant to work in a certain period and this allows you to continue work – when the accountant has finished you should be able to import the accountant’s changes.
    7. Back up your data as an additional safety at year end for you to keep after you send the file to the CPA
    8. Print out your Income Statement and Balance Sheet with a comparison to the prior year. This will provide you with some information on increases/decreases in expenses, income, liabilities, assets, etc. Don’t forget the Income statement is only half the picture – the Balance sheet is the other half.

Q: I run the P&L (Income Statement) and the Balance Sheet reports but I am not sure I fully understand everything on these reports.

  1. Make sure you take the time to understand every report you generate from your books. If you don’t understand them then you don’t have a full understanding of the financial situation of your business. Your CPA should be able to sit down and answer your questions, if not we at SBA are also available to guide you in this area.

Q: Are there any issues outside of QuickBooks that I should look at for Year End?

  1. You should review the following areas:
  2. Get with employees/subcontractors and verify that you have their correct information: mailing address, Social, # of dependents etc.
  3. Review your insurance: general liability and workmen’s comp to be sure you have adequate coverages.
  4. Did you make any major purchases during the past year? Will they create additional job openings – this may qualify for a tax credit.

Karen BershadKaren Bershad is The Small Business Advisor. Most small business owners have a challenge handling all the different areas of running a business. The accounting can be a challenge, particularly if the software seems overwhelming. The Small Business Advisor is what you may need to get you to the next level of your business. We work at your office or provide off site assistance in getting things under control by providing a wide variety of services that are specifically for the small business.

Contact Karen Bershad


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