It’s hard to believe that 2020 is almost here. Time has almost run out for you to get your business’s end-of-year bookkeeping done. Don’t even know where to start? Here are three important things every small business should do:
Reconcile, Reconcile, Reconcile! This one may seem obvious, but we can’t emphasize enough, you have to take this basic step. Review all of your documents to make sure they have been recorded in your books. All bills and invoices should be recorded. Then check your books with your bank account statements. The two need to match up. If not, go back and figure out what’s missing.
Where Are Your W9s? Hopefully you’ve been having any contractor, freelancer, or vendor, you’ve worked with over the year fill out a W9 before they even start a job. A completed W9 shows the IRS that the taxpayer isn’t subject to backup withholding. If you don’t have completed W9s, your business is required to withhold taxes. And even if you don’t have a W9, you will still have to submit your 1099 forms on time, and you’ll have to document your attempts to get a completed W9 from your payee on your 1099s. It’s much more complicated than just having completed W9s on-hand in the first place. Now is the time to get W9s completed, don’t forget to document your attempts to get your payees to fill them out.
Set Next Year’s Budget – Everything is reconciled, and you’ve found all of the W9s. But it’s no time to relax. If you haven’t already, it’s time to set a budget for 2020. You’ve just looked at your records. Is there a period of time where money coming in slowed down in 2019? Is it likely to happen again in 2020? Make sure you budget for that, put off purchases until after the slow period. Any one time fees (such as licensing) that caught you unawares last year? Keep that in mind when writing your budget.
Bookkeeping is a daunting task, not just at year’s end but every month. Instead of taking time away from the important business of making money, why not outsource your bookkeeping? Contact us at VersaTel Solutions. We can help.