The end of the calendar year is the perfect time to perform a QuickBooks cleanup along with other record-keeping and accounting-related tasks. To guide you through this process, here is a checklist of year-end to-dos:
- Reconcile bank and credit card accounts. If you have uncleared transactions older than six months, verify they are actual transactions and not duplicates.
- Reconcile loan balances to match your bank’s year-end balance.
- Review accounts payable for unapplied credits.
- Compile a list of equipment, vehicles or fixtures acquired or disposed of during the year for your accountant. Verify major purchases (over $2,500) are posted as fixed assets and not expensed.
- Review receivables for unapplied credits. Write-off outstanding receivables considered to be uncollectible.
- Review sales and use tax records to prepare for annual filings.
- Take a physical inventory, if applicable, to ensure an accurate tally.
- Review 1099 vendors to verify that information is correct and process 1096 and 1099 forms.
- Review employee records to ensure important information like social security numbers and addresses are correct.
- Prepare year-end returns including 941, 940, state withholding reconciliations, and unemployment reports prior to processing W-2 forms to verify payroll information is correct.
- Reconcile all four quarters of Form 941 to Form W-3.
- Process W-2 and W-3 forms.
Preparation for 2023
- Before processing your first payroll in 2023, update your tax tables and unemployment rate changes in QuickBooks.
- Set a closing date so QuickBooks alerts you to any transactions being posted in the prior year.
- Enter year-end adjusting journal entries.
- If you are not using an online could-based accounting platform, consider switching to one for next year. A cloud-based accounting system can be helpful when it comes to syncing tasks with third-party applications, sourcing information and quickly completing forms. Gift CPAs offers a substantial discount for QuickBooks Online clients and it may even be included in your monthly support program or monthly fixed-price contract with us.
- If you’re already using QuickBooks Online, you can amplify your accounting functionality by connecting your QuickBooks account with other apps. Popular ones include:
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