8 Important End of Year Items

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:

  1. 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.
  2. Take a physical inventory as of 12/31/14before opening for business in 2015. Be sure to enter the physical inventory in POS and push the financial data to QuickBooks.
  3. Take a count of all cash in drawer – this will be the figure your bookkeeper or accountant will adjust QuickBooks to match
  4. 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.
  5. 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.
  6. Verify employee mailing addresses for W-2 mailings.
  7. Verify vendor mailing addresses for 1099-MISC mailings.
  8. 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).

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