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How to keep your business in the black.November 29, 2019
Our first episode of Open Book: Discussions with a Backyard Bookkeeper. We talked with Julie DeLong, COO, about prepping your books for year end! Here are the 5 questions and points she answered/covered: 1. What is a short reconciliation checklist that you would recommend for businesses at year end? 2. What’s the most important thing to take care of for your 1099’s? 3. How can you figure out your estimated tax liability and how can a business owner prepare for that? 4. How do employee end of year bonuses work and how can a business account for them? 5. Talk about some of the year end procedures that businesses go through. Knowing these tips and tricks will be key to prepping your books for year end.
Preparing your books at the end of the year is a crucial undertaking for smooth and accurate tax filing. This process ensures that your financial records are organized, up-to-date, and compliant with tax regulations, creating an easy experience when working with your accountant or tax professional. Thorough bookkeeping allows for the identification and documentation of all deductible expenses, potentially maximizing your tax savings. It helps in clearly delineating business and personal expenses, preventing any commingling that could lead to complications during audits.
By meticulously categorizing income and expenditures, you gain a comprehensive understanding of your financial health, aiding in informed decision-making for the upcoming fiscal year. Timely and accurate book preparation not only streamlines the tax filing process but also minimizes stress and potential errors. Ultimately, a well-prepped set of books serves as a valuable financial roadmap, ensuring compliance with tax laws, optimizing deductions, and providing a solid foundation for strategic financial planning.
Find more useful tips about bookkeeping here.