Year-End Bookkeeping and Accounting Tasks

The end of the year is a great time to assess the progress of your company this year and look for ways that you can increase your success in 2016. Your financial tracking system is a foundational aspect to understanding the success of your company, and there are several things that you should look at before the year ends. Within the next few days, consider some of these things:

Retirement Contributions

As a self-employed business owner, there are ways that you can decrease your taxable income for the year. Retirement contributions offer a strategy that might be helpful, depending on your individual situation. If you want to lower your taxable income as much as possible, then you should max out your contributions to your IRA.

Tax Form Preparations

When it comes time to send out employee income statements for 2015, you need to make sure that you are ready with all of the information that is needed. It can be beneficial to get a head-start on the process right now, so that you aren’t rushing at the end of January to gather the information that you need. Talk with your bookkeeper about the information that will be necessary to send out the 1099’s and W-2’s.

Estimated Tax Payments

Making tax payments throughout the year is important to ensure that you are meeting your financial obligations to the IRS. These estimated tax payments might need to be adjusted, to avoid underpayment or overpayment. With good financial tracking throughout the year, you will have the information that will show how accurate your tax payments are. Talk with your bookkeeper and review your financial records to see if you need to adjust your final payment for 2015.

Profit and Loss for the Year

Run some reports to see the profit and loss for the year, which will help you decide if it makes sense to make a few major purchases before the year ends. If you don’t know how to run these reports, then you can talk with your small business bookkeeper or accountant and have them help you understand what the numbers mean. In some situations, it might make sense to buy the items that are needed so that you can use the tax deduction in 2015.

At Easier Bookkeeping, we are here to help with your financial tracking throughout the year. If you want to reduce your stress levels and have detailed information about the success of your company, then you need to hire a bookkeeper to help with financial tracking. For more information about the business bookkeeping services that are available, we invite you to contact us today: (888) 620-0770

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