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How to Prepare for Year-End Reporting

12/15/2016

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10 Easy Steps to Get Ready for the Year's End

With the end of the year approaching, preparing your accounting information ahead of schedule is always ideal. This will make tax filing and form submission much less of a hassle. With this checklist, you can plan ahead and avoid any difficulty. 

  1. Pay Vendors and Contractors: Always be sure to fully pay your vendors and contractors. Check with your accountant to see if your contractors need to submit a W-9 form. By January 31, each contractor should have also filled out a 1099-MISC form.
  2. Prepare Payroll Records: Begin to gather this information. If you’ve partnered with payroll experts like LBMC Employment Partners, we’ll ensure that there are no issues and that you comply with all regulations. 
  3. Profit and Loss Report: Generate a profit and loss report, as well as a balance sheet, and identify what your business did well and what could be done better for next year. 
  4. Review Profitability: Generate an income statement and review each revenue-generating item, as well as each tax deductible expense. Cash flow reports are vital documents for your business, as they indicate how much cash your business has readily available.
  5. Estimate Taxes: If you pay tax payments quarterly, be sure to keep track of what you’ve already paid. This will help you determine what you’ll need to pay at the year’s end. Don’t forget to include taxes from bonuses given to employees, as these are also subject to any taxes applicable to regular pay.     
  6. Review All Employees: Be sure to verify that your payroll contains only current employees and that their information is correct. Ensure that previous employees cannot access company systems. 
  7. Tax Deadlines: Depending on the structure of your business, tax dates will vary. Verify your deadlines on the IRS’s calendar.
  8. Tax Payments: Keep tax payments secured separately, and be sure to include enough to cover both state and federal taxes.
  9. Review Clients: Review client contact information, and confirm that all details are correct.
  10. Goals: Review what you were able to accomplish this year, and develop goals for the next year to keep you motivated and growing. 

With this checklist, preparing for your year-end reporting should be effortless. For any assistance in preparation, or if you have questions about year-end reporting, please feel free to contact your local LBMC Employment Partners representative.

Posted in: Human Resources