Written by: Stephanie Parris, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
As we work to finalize financials and prepare for year-end taxes, I created a checklist to help other small business owners. If you follow the list below, your accountant will thank you and your tax preparation/planning should go smoother.
As you grow your business, consider implementing the same checklist on a monthly basis to ensure you have accurate and timely financial reports to grow and scale with.
Small Business End of Year Checklist
Accounting – Financial
1.Run your balance sheet for the whole year
Ensure nothing is in the open balance equity account
Make sure you do not have negative assets (except accumulated depreciation) or negative liabilities
2. Run your profit and loss but run it by month, not total
Make sure you have rent and utilities and other recurring activity in every month
Make sure your revenue is not negative
You should not have negative income accounts (unless it is a discount) or negative expense accounts
Make sure loan payments are not directly hitting the P&L. Only the interest portion should hit here
3. Verify vendor information
Make sure addresses are up to date
Make sure W9’s are on file
4. Review Accounts Receivable
Make sure there are no negative accounts
Determine what may not be collectible
5. Review Accounts Payable
Make sure there are no negative accounts
Information Technology
Backup your computer and your contacts
Download important files and reports to store in a cloud system i.e. Google Drive
Make sure your reports and files are named appropriately
General Business
Review insurance policies, don’t be afraid to get a second opinion
Do an inventory count of business equipment as well as goods/materials
Review your policies and procedures
Review your website, make necessary updates
Plan Ahead
Look at prior year data and set a budget
Set revenue goals and targets
Plan out goals for the coming year and how you will track them
Talk to your accountant/tax preparer for tax planning as you accomplish these goals
Stephanie Parris, Executive Contributor Brainz Magazine
Stephanie Parris has a Masters’ Degree, in Accounting and Financial Management. She writes about accounting and business for today’s world. She has extensive knowledge of the non-profit, construction, real estate and service industries which she serves. Stephanie has become a leading expert in QuickBooks as well as outsourced accounting services. Stephanie lives in Missouri and volunteers and cooks for her local rescue mission, serves with Made to Serve as well as Race for Rett, mentors local female high school students, has a passion for wine and cooking, and loves spending time with her family and close friends.
