2011 Year End Bookkeeping Checklist

The end of year is an important time for small business owners to get organized and start preparing for tax time. Below is an outline to help you prepare your accounting records so you can be up to date by year end and ready to start fresh in 2012.

Enter final transactions

• Compare your 1040-Schedule C from prior years to this year’s expenses
• Enter all cash receipts for business expenses
• Reconcile all your accounts and enter any missing transactions
• Work on reducing your receivables
• Write off bad debt
• Make SEP IRA or 401K contributions and donations to charities to reduce taxable income
• Make all asset depreciation entries for equipment that is on a depreciation schedule

Get organized for your CPA

• Ask your CPA which reports and documents will be needed for tax preparation and if year- end reports should be on a cash or accrual basis
• Organize statements and receipts for expenses that will be itemized on your Schedule C/1040
• Print out a copy of your general ledger
• Back up your files to prevent any data loss
• At the end of the year send a copy of your Income Statement and Balance Sheet to your CPA to get an idea what your taxes will be
• Review your budget and begin developing 2012′s budget

Employees and independent contractors

• Order W-2 and 1099-MISC forms early
• Get independent contractors and employees current mailing address, Social Security numbers and total payments made to them for the year

I hope these tips have been helpful to your business. To learn more about virtual bookkeeping services visit our web site at http://www.youradministrativesolutions.com. Email fran@youradminstrativesolutions.com or call 866-363-5580 for a free consultation.