Bookkeeping Tasks to Prep for Tax Season

As the year comes to a close, it’s the perfect time to wrap up your bookkeeping and get a head start on tax season. Here’s a quick checklist with details to help you stay organized:

1. Reconcile All Your Accounts

Compare your bank and credit card statements with your bookkeeping software to ensure all transactions are accurate and accounted for. Resolve any discrepancies now.

2. Organize All Your Receipts

Gather all receipts for business expenses, both physical and digital. Use a scanner or app to digitize them and store them in a cloud-based folder for easy access.

3. Review Invoices

Check for unpaid invoices and send reminders to clients. This helps improve your year-end cash flow and ensures you don’t leave money on the table.

4. Run Financial Reports

Generate your Profit & Loss, Balance Sheet, and Cash Flow statements to get a comprehensive overview of your business’s financial health. These reports are essential for tax prep.

5. Gather Tax Documents

Collect forms like W-2s for employees, 1099s for contractors, and records of deductible expenses like mileage, utilities, and office supplies.

6. Prepare for Next Year

Use insights from this year’s data to set financial goals, create a budget, and plan for growth in 2025.

Knocking these tasks out now will make tax season a breeze and ensure you start the new year stress-free.

Need help? Send me a message, and I’ll make sure your books are in top shape! Cheers to a successful end of the year!