-Great-great-aunt Rose from “Rosie Revere, Engineer”
This year has flown by and at the same time…lasted forever! It’s time to get ready for year end. This process actually starts ALL year!
Did you pay vendors with your personal Venmo account? Be honest. I’m putting this one first on my list because we need to get them entered. Any payments to vendors, not paid with business accounts, won’t be entered unless I know about it. Some payments should be reported on 1099s so we don’t want to miss them! You need to count the expense and the vendor needs to count the income.
Your bank, credit card, and loan accounts should be entered and reconciled each month. Interest expense should be separated from principle on loan payments. This ensures your principle balance is correct on your books and Interest is deducible and principle is not.
We need to make sure any remaining “ask” transactions are cleared up.
Review any accounts payable and accounts receivable.
Take inventory. If you sell products, count how much inventory you have on hand. Counting inventory isn’t limited to products you sell but can include any assets and other supplies.
Start now to make a smooth transition into 2021!