Everything That Goes Into Year-End Bookkeeping (and why you need a bookkeeper)

As we gear up for the year's end, let's dig into the nitty-gritty of year-end bookkeeping. So, you're thinking what the hell is that? Well, it's basically tying up all the loose ends for the year.

Depending on your business, this can be a breeze or a bit of a puzzle. But no matter what, there are some must-do steps before finalizing those financial statements.

Let's break down this whole process in plain and simple terms.

The Initial Check:

Think of your ledger like an unfolding story. As the main character of your business tale, it's crucial to look back at every financial move.

Check that each transaction plays a significant role in shaping your financial story. It's like getting the full picture of your business's highs and lows.

Wrangling Your Documents:

You've got a mountain of paperwork—receipts, invoices, reports. Sorting through this paperwork chaos means taking control of your financial world. And hey, it's not just the paper ones; digital records count too!

Tie all those digital receipts and invoices to your QuickBooks transactions. That way, you're covered if the IRS or an auditor comes knocking.

Deciphering Tax Stuff:

Understanding the tax code might sound daunting, but it's crucial. Dive into deductions and credits, making sure you're following the rules and making the most of your tax position.

Before involving a tax preparer, make sure your books are squared away and if you do not know this please consult a professional (like a bookkeeper - hint hint shameless plug).

Balancing Your Books:

Reconciling isn't just about marking transactions as "reconciled" in QuickBooks. It's about ensuring everything aligns correctly between your bank statements, financial reports, and accounting software.

Missing a deposit or mismatching a transaction can throw your financial reports off track.

Keeping Track of Inventory:

Counting and valuing each item in your inventory might seem like a headache, but it's worth it. This diligence ensures your financial reports are on point and helps you avoid potential problems.

Plus, it's not just about reports; it's about making smart business decisions.

Making Your Statements Match:

Your financial statements—balance sheet, income statement, and cash flow statement—should work together seamlessly. If they don't, it could spell trouble. Misalignments between these reports might indicate underlying issues in your finances.

Year-end bookkeeping can be a bit of a challenge, and as financial folks we can help! It's our chance to show off our expertise and set you up for a strong start to the new year.

May your records be spot-on, your paperwork tidy, and your year-end efforts lead to success!

If you're looking for a hand in wrapping up the year and getting ready for a stellar 2024, shoot us a message. Making this whole process hassle-free for you is what we're all about!