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Year End Preparation Tips
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With another year end fast approaching, it is time to focus on getting your accounting records in order. By taking care of some tasks early, you can make the year end smoother and less hectic.
Here are some of my tips for year end preparation:
- Catch up on bookkeeping. If you haven't been diligent in keeping up with bookkeeping during the year, now's the time to catch up. If you are using a computerized accounting system (which I highly recommend over a manual bookkeeping system), enter transactions and reconcile your bank and credit card accounts through the statement end dates. This will ensure all transactions have been entered.
- Organize paperwork. Make sure records, such as receipts, invoices, and statements are organized for easy reference if questions arise during year end or tax preparation. If you haven't already, establish a filing system for all of your documents and file all paperwork. In addition to records, make a list of all assets purchased and/or disposed of during the year. If you have an inventory, plan on doing a physical inventory count as close to year end as possible, and keep detailed records for updating your books.
- Update employee and vendor records. If you have employees, make sure you have current address info on file for W2 forms. Same for vendors for whom you need to send 1099 forms. Also make sure you have current W9 forms on file for vendors - you can download the form and instructions at www.irs.gov.
- Be aware of any payroll tax rate changes and contribution limits for 2013. The IRS just released info on new limits for 401(k) and IRA contributions, as well as the new mileage reimbursement rate. In addition to the new limits and rates, the 2011/2012 Social Security withholding tax cut is due to expire at the end of 2012, bring the employee withholding rate back to 7.65% starting Jan 1, 2013. There is also an additional Medicare withholding tax on those earning over $200,000.
- Order year end forms by mid-December. If you plan to print your W2s and/or 1099 forms, be sure to order forms early and to order extra forms in case of printer problems or reprints. If you use QuickBooks, see the QuickBooks Corner section below for more info on ordering QuickBooks forms. NOTE: If you plan on filing electronically, you may only need recipient forms.
- Verify your back up system in working properly. Whatever back up method you use, be sure to test it and verify that is working properly. You should back up your data often before and after performing year end tasks to avoid potential problems.
If you would like some hands-on assistance with year end tasks, or just some guidance, please contact me at Tracey@FirstTierAccounting.com to schedule an appointment.
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QuickBooks Corner - Order Year End Forms Early
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QuickBooks software has the capabilities to print and e-file both the W2 forms and 1099 forms. If order to print/file W2s, you need to be using the QuickBooks payroll service. For the 1099 forms, you need to do some set up before your actually print the forms, so call me if you would like some assistance with this.
To order forms, click here. NOTE: Check with me before ordering - I can give you a discount code for up to 20% off of forms.
Also, be sure to order more than you need so you have extras in case of printer jams or reprints.
If you have any questions regarding year end forms or ordering, please email me at Tracey@FirstTierAccounting.com.
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