It’s mission critical time to close out 2020 strong!
Check to make sure all your accounts are reconciled and up to date. This includes checking and savings accounts, credits cards and all loans. I also think all your payroll liability accounts should be reconciled as well.
Run a Profit and Loss Detail report to review and check that all income and expenses are categorized properly.
Run a year to year Profit and Loss comparison report and review to see what changes have occurred in your business’s expenses and income this year. This is a good time to think about how you can increase profits and where you can cut expenses.
Let your CPA help with Tax Planning!! Any tax preparer can plug your numbers into a tax return, but a taxadvisorwill help you determine ways you can minimize your tax liability. If you have not already met with your CPA this year, now is a good time to do that! Let them review your income and expenses NOW to see if you need to make any capital purchases or reduce expense somewhere before the year is over!
If you are an owner of an S-Corp, check with your CPA to find out how much your 2020 wages should be for the year. Most likely, they will want to review what you have taken in draw/distributions from your business this year. *Remember that any business funds spent on personal expenses will count towards a draw/distribution.
Review your insurance to make sure you are properly covered. If you have had any big life changes like a marriage, a baby, a death, large changes in your income, expenses, payroll, moved, sold and/or bought a property you should call your agent and have a meeting.
Start planning for the New Year! What can you do differently next year to be more profitable and efficient? I have one suggestion…. hire a professional bookkeeper who can help you do all the items listed above!