There are just a few weeks left in 2021—you’ve likely got a lot to do! One thing you should plan as you complete your year-end accounting tasks is a meeting with your accountant.
While scheduling a meeting at one of the busiest times of year seems counterintuitive, you definitely don’t want to wait until tax season! Now is the time to set yourself, and your business, up for easier success in 2022 with a firm grasp on where you stand. Spending a bit of time now will save you a lot of time in the coming year as you reach your goals.
Year-End Accounting: What You Should Know
Before you meet with your accountant, running through some basic accounting items will help you prepare for the discussion. If someone else prepares any of these items for you, ask to receive them in advance.
- Gather your financial statements
- Make sure all outstanding invoices are paid—and collected
- Double-check all W-9 and W-4 forms
- Update your payroll, including year-end bonuses
- Complete a full inventory (if you sell physical goods)
- Complete bank account reconciliation
What to Talk to An Accountant About
With our clients, we always take a look at the overall standing of the business. This includes a general discussion about revenue and expenses. However, we often go beyond that, identifying risks and opportunities in the coming year. Our goal is to help clients have a clear-eyed view of their business, so they understand what the impact of any decision-making will be.
Another topic for a year-end accounting check-in: taxes. This is especially important if COVID continues to impact your business and you are closing, accepting additional government funds or missed a tax payment.
From estimating tax payments for the upcoming year to finding out whether you may be able to avoid any penalties, talking to your accountant is the best way to prepare for what to expect. There may also be a few things you can do before December 31 to lighten your tax load.
Budgeting for Your Business
While you may think of an accountant as someone who simply files paperwork on your behalf, it can be very beneficial to enlist the help of a professional to help you plan a budget for the upcoming year.
An accountant can help you by assessing your current budget and financial documents to help you create a new budget for the coming year. They may advise adjustments in necessary areas based on what your statements reveal. This conversation might change your goal or the way you choose to keep track of things like cash flow throughout the year.
Schedule a Year-End Accounting Consultation
This only scratches the surface of what we might discuss and does not constitute specific advice. Your business and your goals are unique. Contact us if you’d like to discuss your year-end accounting needs.