So- we recently published a “Don’t forget for End of Year” Checklist on our social media. Go take a look.
Here we will give more details on each of the items on that list.
Number 1: Record your mileage
The reason it is valuable to track the amount of miles you used on your vehicle for business is updated is because you or your tax preparer can go straight to calculating the deduction for tax time. You will need to record the total amount of mileage on your vehicle and the amount that was used for business travel. QuickBooks Online has a great feature that can calculate this from an app. on your phone. Let us know if you are interested.
Number 2: Count your inventory
A self-explanatory one- if your business has inventory, just make sure you’re counting your materials and supplies. Also, be aware how much you spent on them and their current value. If any inconsistencies exist between your count and the balance sheet- they need to be fixed as soon as possible.
Number 3: Log in and look at your Year-to-Date(YTD) Interest Expense and Year-End-Balance
This is important because usually you can write the interest off as a business expense. However, you need to check this yourself since this information isn’t likely going to be sent straight to you.
Number 4: Process Final Payroll
First, check to make sure Form 941 (reporting your quarterly tax withholding amounts) and Federal Income Contribution Act taxes are up to date. Then spot check the following:
- Benefit changes or withholding of fringe benefits
- Deferred compensation
- Employee information
- Employee wages and deductions
- Raises and bonuses
- Time-off balances
- Withheld tax amounts
Then process a final payroll report.
A quick note on this- final payroll has to do with the date the payroll is processed: not the day the employee(s) worked. So, any payroll processed on or after January 1st, 2024 will count toward 2024 taxes (even if that pay was for work done before January).
For the new year, be on the lookout for State and Local Tax rate changes that usually come up in the last quarter of the prior year, and update these in your software.
Number 5: Check that you are up-to-date on your estimated tax payments
The deadline for paying prior year’s tax payments comes quickly in January, and it is best to ensure you are up-to-date so you avoid penalties/fees.
Number 6: Review any uncleared checks or undeposited funds at the end of the year and adjust as needed
This one is a huge benefit to your profit! Ensure all your money is where it is supposed to be, by checking any undeposited funds or checks that have yet to be cleared.
We hope this gave you some good reminders! Thanks for reading!
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Disclaimer: This article is intended to provide general information to the public and does not provide personalized tax, investment, legal, or business advice. We encourage you to should seek the assistance of a professional for advice on taxes, investments, and any other financial, legal, or business matters pertinent to your individual situation.