Businesses will be considering how to financially navigate the coming year in terms of budgeting and forecasting, seeing where they can make adjustments. Meanwhile accountants should be lining up how to help these companies with realistic financial goals in the new year while also making sure everything is ready for tax time. Here are some important year-end checklist items to consider.
Accountants should make sure that all forms are filled out and all payments are made or are scheduled by the end of the year. Companies need to make sure they’re ready to get their employees their W2’s in a timely manner; this is where accountants need to be diligent about timing. Accountants can also take into account accrued bonuses or special gifts on the books that may not be paid until the following year.
Close out all outstanding receivables before year’s end and do what you can to collect on unpaid bills. By improving your collection process and expediting payments, accountants can help a business maintain better control over cash flow.
Accountants can be on the hook for liabilities related to errors and omissions among other reasons they can be sued. When it comes to the end of the year, there may be a rush to get everything finished quickly. Accountants should not only be careful about their work, they should also be careful about their reputation.
In the event a mistake is made, accountants professional liability insurance plans can help protect against major financial hits during litigation, if it gets to that. Accountants insurance plans are built for financial professionals who see added pressure to get things done quickly during a busy time of year. Having accountants professional liability insurance in place means peace of mind.
If a business’s financials aren’t already inline with generally accepted accounting principles, GAAP compliant in other words, then the end of the year is the best time to correct that. If the company you work for is planning on seeking funding or selling part of the business in the near future, accountants will need to help to clean the books to satisfy investors and possible acquiring companies.
Income Tax Planning
Accountants can get ahead of the upcoming tax season by identifying tax needs. Think about potential tax savings and work with business owners on identifying ways to minimize taxes. By starting on estimates early you can get ahead of unwanted surprises come tax time.