A note from your bookkeeper. It’s less than one month from January 1, so it is now time to get ready for year-end.
This is not an exhaustive list, but an outline of what you need to prepare. BTW, if you need to order 1099s for your independent contractors, let me know if how many you will need so that I can pool purchasing of the forms through Quickbooks.
Order supplies well ahead of time
Order 1099-MISC forms and W-2 forms early (These are for Independent contractors)
Get contractors current mailing address, SSN and the total payments made to them for the year.
Enter final transactions for the year
Reconcile all your accounts and enter any missing transactions
Work on reducing receivables (Follow up with clients/customers to get paid)
Write-off bad debt if necessary, but work on getting paid first
Make all asset depreciation entries (only applicable for equipment that you had put on a depreciation schedule)
Print and close your records
Print financial reports (income statement, balance sheet, statement of cash flows)
Close your books
Organize expenses that will be itemized on your Schedule C /1040
Remember to include transportation expenses (annual subway/taxi/bus)
Send copy to your accountant
Start the year right
Distribute profit from the business
Determine budget for 2007
Set profitability goals (i.e., “I want to grow my business by 25% in 2007)
Reduce “cash oozers”!
1. Review your mobile phone plan to get better plan for text messaging/minutes
2. Negotiate better interest rate on credit cards.
3. Transfer credit card balances but READ the fine print carefully and make sure that you note the interest rate and pay timely
4. Make online purchases of office supplies (saves time which saves money)
File tax forms
Follow tax advice from your accountant
Mail Forms 1099-MISC to vendors by January 31
File Forms 1099-MISC and 1096 with the IRS by February 28