Bookkeeping Clean Up for Easier Taxes

Get Your Books Tax-Ready: Year-End Bookkeeping Tips

As we approach the end of another fiscal year, now is the crucial time to ensure your business’s financial records are organized and accurate. Proper bookkeeping isn’t just about compliance – it’s the foundation for making informed business decisions and having a smooth tax season.

Why Year-End Bookkeeping Matters

Clean, accurate books are essential for:

  • Making informed decisions about year-end tax planning
  • Identifying tax deductions you might otherwise miss
  • Avoiding costly delays during tax preparation
  • Starting the new year with confidence in your numbers

Essential Year-End Bookkeeping Tasks

1. Reconcile All Accounts

Review and reconcile your:

  • Bank accounts
  • Credit card statements
  • Loan accounts
  • Merchant services accounts
  • PayPal or other payment processors

2. Review Outstanding Receivables and Payables

  • Follow up on unpaid invoices
  • Verify vendor bills are properly recorded
  • Write off any uncollectible debts
  • Update your accounts payable aging report

3. Organize Supporting Documentation

  • Gather receipts for all expenses
  • Ensure vehicle mileage logs are complete
  • Document business meal expenses
  • Collect Forms 1099 information
  • File W-9s from contractors

4. Check Your Payroll Records

  • Verify employee information is current
  • Confirm payroll tax deposits are up to date
  • Review benefit accruals
  • Prepare for W-2 and 1099 filing

Common Year-End Mistakes to Avoid

  1. Missing Transactions: Ensure all income and expenses are recorded, including:
  • Cash transactions
  • Owner contributions
  • Personal expenses paid for business
  • Business expenses paid personally
  1. Misclassified Expenses: Review expense categorization for accuracy
  • Proper assignment of meals and entertainment
  • Correct classification of assets vs. expenses
  • Accurate allocation of mixed business/personal expenses
  1. Incomplete Documentation: Maintain proper support for:
  • Business purpose for expenses
  • Receipt images for electronic payments
  • Vehicle logs for business mileage

Don’t Wait Until It’s Too Late

The year-end rush is approaching quickly. Our team can help ensure your books are accurate and tax-ready, saving you time and potentially reducing your tax liability through proper planning and documentation.

How We Can Help

  • Review your books for accuracy and completeness
  • Clean up any bookkeeping issues
  • Prepare supporting schedules for tax preparation
  • Identify tax planning opportunities
  • Set up systems for better record-keeping in the new year

Take Action Now

Don’t wait until the last minute to address your bookkeeping needs. Contact us today to schedule a year-end review and ensure your books are ready for tax season. Our experienced team can help you close out the year with confidence.

grow@cultivateconsulting.co or schedule your discovery call https://calendly.com/cultivate_co/discovery-calls

Remember: The better organized your books are now, the smoother your tax preparation will be – and the more likely you are to identify every possible tax advantage for your business.

Christine Gervais

Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.

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At Cultivate Consulting Group, we understand that you want to achieve lasting financial stability that leads to the legacy you envision for your company and family. The problem is traditional CPA firms are not known for proactive communication, which leads to uncertainty when it comes to your business’s tax efficiency and financial standing.

Based in Berwick, Maine and serving the USA
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