20 Quick Tips to Get Organized with this Year End Closing Checklist

It is getting close to end of 2019 and what better way to start off 2020 than to be organized! Here is a simple checklist of items that you can start now and make your year end close go much smoother.  And don’t worry if you don’t know how to perform some of these tasks, that’s what we are here for.

1. Catch up on your books, especially if you do them only once a year. By doing it now you will be able to get to your accountant faster this time of year and they will appreciate getting the work done ahead of their crunch time.
2. Catch up on bank reconciliations in case they aren’t up to date. Don’t forget your savings accounts and Pay pal accounts. Void any old uncleared checks if needed.
3. Review unpaid invoices in accounts receivable and get aggressive about collection. Clean up any accounts that don’t reconcile and write off any invoices that are no longer collectible.
4. Confirm employees and vendors addresses and SSN’s. Send W-9’s to any contractors that you will need to send a 1099 to.
5. If you have vendors not paying sales tax make sure to collect exemption certificates from them.  
6. Decide if you are going to pay employee bonuses before year end.
7. Inventory, if you carry inventory you will need to take an inventory. The books will need to be adjusted accordingly.
8. Bank statements and payroll reports should be boxed up and stored in a safe location.
9. Make sure to properly adjust any loans and record any interest expense properly.
10. If you are a cash basis business, try and pay as many bills as possible before year end.
11. Get an idea of what your profit will be for 2019. If you need more deductions to reduce your tax liability, consider purchasing equipment, delay invoicing or making retirement plan contributions.
12. File important papers in a safe place; business contracts, leases, and employee payroll records.
13. Prepare a budget for 2020 and enter it into your accounting system. Review it periodically.
14. Review your products and services pricing and decide if you need to make any changes for 2020.
15. Make sure to update your payroll system with new unemployment tax rates.
16. Contact your payroll service company before year end if any fringe benefits need to get added such as health insurance.
17. Review all balance sheet accounts and adjust as necessary.
18. Determine employee holidays schedule for 2020.
19. Setup a time with your accountant to review 2019 results and get ideas for year end tax planning and how to meet financial goals for 2020.
20. Lastly, remember to celebrate the new year and be charitable with your family, friends, church and others less fortunate during the holidays. Try and gain insight and perspective on the upcoming year and be hopeful.

Start 2020 with a bang and this year end checklist, and feel free to call us if we can help with anything.  Call us at 248-524-5240.