Bookkeeping is not hard. Tedious maybe, time-consuming, yes. However, if one does small routines over time, big things happen.
One such advantage is the little time it takes to wrap your books for the year. Books that have been kept all year with weekly, monthly, and quarterly tasks require very little for year-end processing. Typically, December gets reconciled, budgets get reviewed, reports are pulled for the accountant. Here’s a short list of the general tasks to be completed for year-end:
- Submit 1099s
- Print and distribute W2s
- Year end financial reports
- Review of YTD books
- Reporting to Accountant for tax filing
Optional
- Create journal entries
- Review inventory
- Review and update budget
- Set projections and forecasting for new year
With the year now behind you, it is time to do an about face and look at what is to come. Budget and projections for the upcoming year are so important, as is setting targets and tasks that will get you and your business to your vision. The challenges that will universally affect businesses in 2023 include an unfriendly economic downturn, increased competition with name-brands, continued challenges with employee retention, and the added pressure to raise rates and further decrease consumer retention (Wix Blog 24 Nov 2022).
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Have a wonderful safe New Year!