If you do not regularly complete your bookkeeping (either doing it yourself or using the assistance of a bookkeeper) now is the time think about getting it done. Your CPA will want your information early in the year to have plenty of time to process your tax return. And if you’re going to file an extension, your figures will need to be known in order to determine if you must make a tax payment to avoid penalties and interest.
If you’ll be hiring someone to help with this task, it’s important to gather all the documents to give at one time. Here is a list of items you’ll want to send to your bookkeeper:
- Bank statements
- Check register or check stubs
- Paid invoices
- Sales information
- Deposit information
- Accounts receivable information
- Accounts payable information
- Petty cash receipts
- And information about other transactions such as loans, credit card statements, and any other items that need to be entered to accurately reflect what happened in your business
Review all information for completeness before handing it over to your bookkeeper. They will then be able to reconcile your bank and credit card accounts, record cash receipts and disbursements, adjust your accounts payable, and adjust entries as necessary. Adjustments to be made may include:
- Writing off uncollectible accounts receivable
- Gains or losses from investments or the sale of equipment
- Prepaid asset amortization
- And interest expenses
Once the information is processed, your bookkeeper will prepare your financial statements including:
- Balance sheet
- Statement of income
- General ledger
- Other reports as needed by your business
The importance of accurate financial information cannot be overstated. Bookkeeping helps you to evaluate your business as well as make tax return preparation easier. It helps you to determine what’s working as well as what’s not working. Strong and reliable financial records are just as important when dealing with tax compliance checks.
If you don’t yet have a bookkeeper and would like to find out more about our services, fill out our questionnaire. We’ll review the information and discuss with you what the best options for your situation would be. We are ready to help you!