We asked our favorite Full Charge Bookkeeper what we and our clients should do differently come the end of the year. This is her list of 8 Important End of Year Items that we highly recommend you do:
- Verify you are running latest updates in both POS and QuickBooks software. In QuickBooks, run the utility Verify Data, take a back up of both POS and QuickBooks before and after performing year end tasks.
- Take a physical inventory as of 12/31/14 – before opening for business in 2015. Be sure to enter the physical inventory in POS and push the financial data to QuickBooks.
- Take a count of all cash in drawer – this will be the figure your bookkeeper or accountant will adjust QuickBooks to match
- In QuickBooks, verify the balance sheet items such as:
- Reconcile bank accounts, credit card statements through 12/31/14. If need be, wait until January credit card statement has been received and reconciled prior to sending to your accountant for tax return preparation
- Review accounts for accuracy – the account called “Unbilled Purchases” should be zero. If a figure appears in this account, check for receiving vouchers in POS that indicate “Need Billing Info.” Update and push financial data to QuickBooks.
- Confirm balance in Inventory Asset matches POS valuation; record adjusting journal entry as needed.
- Print out an Accounts Receivable open invoices and Accounts payable unpaid bills detail reports and confirm any outstanding customer invoices and vendor bills are correct as of 12/31/14. Adjust as needed.
- Verify balances in Gift Certificates Outstanding, Gift Cards Outstanding, Customer Deposits, and sales tax payable accounts. Adjust as needed.
- Verify balance(s) in any outstanding loan accounts; adjust for interest expense as needed.
- Verify the account “Retained Earnings” matches prior year per tax return, or per accountant’s report from prior year end. Adjust as needed.
- Request Form W-9 – Request for Taxpayer Identification Number and Certification from any service providers that were paid over $600 during 2014. All attorneys are to receive a 1099-MISC if paid over $600 regardless if incorporated.
- Verify employee mailing addresses for W-2 mailings.
- Verify vendor mailing addresses for 1099-MISC mailings.
- See IRS website for instructions on filing 1099-MISC: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
As always, it is important to have a good bookkeeper as well. Please feel free to reach out to us for a referral! 844-4QBOOKS (844-472-6657).