3 Things to Check This Week to Keep Your Year-End Bookkeeping on Track
3 Things to Check This Week to Keep Your Year-End Bookkeeping on Track
With the year almost wrapped up, this is the time to double-check a few key areas in your bookkeeping so your tax filings start off smooth. These small reviews help you avoid surprises when it is time to finalize your financials.
Check for unrecorded expenses Look for receipts, vendor bills, or subscription charges that never made it into your books. Missing expenses mean missed deductions, which can increase your taxable income. Cleaning this up now ensures your records match your actual business activity.
Review unpaid customer invoices Outstanding invoices affect your cash flow and year-end reporting. Make sure everything is entered correctly and follow up on overdue payments. For accrual-basis businesses, unpaid invoices still count as income, so accuracy is important for tax compliance.
Confirm payroll totals Compare your payroll reports to what is recorded in your bookkeeping system. Wage mismatches and incorrect tax totals are common this time of year and can lead to filing issues for W-2s and payroll tax returns.
Example: A business in Ashburn reviewed its books and found three software charges that were never recorded. Adding them reduced taxable income and improved the accuracy of their year-end statements.
