An Accounting Checklist For Year-End Preparation
At Infinite Accounting Solutions, we understand that year-end financial preparations can be quite a challenge. The procedures and paperwork involved can be viewed as stressful or laborious, but with a little training, you can handle your year-end preparation quickly and easily.
As experts in bookkeeping, we’ve created a handy checklist to help you complete your taxes with as little stress as possible. Follow our accounting checklist for year-end preparation to ensure you have everything you need to get your accounts in order and prepare your taxes on-time and without a hitch.
1. Gather your statements!
Make sure you have all your credit card and bank statements ready for viewing, in sequential order. That way, it’s easy for your bookkeeper or accountant to locate the details necessary to prepare and file your accounts and taxes.
2. Gather your receipts!
Un-crumple those receipts and check all your storage spots to make sure you have all your receipts in one place.
3. Code your receipts!
To take away the guesswork for your bookkeeping, code your receipts to the expense account.
4. Match receipts to statements!
This will help you to see which receipts you’re still missing and make entering the transactions easier for your bookkeeper and accountant.
5. Bundle business expenses!
If you have business expenses that you’ve paid personally, bundle them together. You can still claim these expenses, even if they didn’t go through your business account, but we can only enter them if we have proof that the expense occurred.
6. Determine your vehicle use calculation!
If your vehicle is for both business and personal use, determine the calculation for business and personal mileage. All of your vehicle expenses (insurance, fuel, repairs, and maintenance) will be adjusted based on the percentage calculated. You can purchase a mileage log at an office supply store, or there are mileage apps you can use, which will help track your mileage.
7. Compile your receipts for business use of home!
If you have a home business, you can write off the portion of your house that is used solely for business. The percentage of business use is calculated by determining the square footage of your business area divided by the total square footage of your house. Once you have determined the percentage used for business, you can deduct a percentage of everyday expenses such as utilities, security, and alarm, etc. If you have expenses that are strictly business (i.e., an office line), that would still be deductible at 100%.
8. Bring your completed paperwork to your bookkeeper or accountant as soon as possible!
Many clients have the same year-end date. As a result, our goal is to have your books processed promptly. But, it will help us greatly if you submit your books as soon as possible.
9. Make a note of your activities!
Please note if there are any activities outside of your regular operation of the business during the year. For example, vehicle disposals and acquisitions, office relocation, etc. Make a note of these activities and share them with your bookkeeper so that we can be aware of the same when processing your numbers for the year-end.
If you have any concerns about filing your taxes or you’re looking for an accounting firm to help simplify your accounting, reach out to Infinite Accounting Solutions. We are a renowned bookkeeping firm located in Langley, British Columbia, and we want to help you save more time and money. We are a team of experienced bookkeepers, and we are capable of handling all your accounting needs. We offer exceptional services for business owners interested in spending less time on paperwork and more time in generating sales. We also offer convenient in-house bookkeeping and onsite bookkeeping solutions.