Many business owners find themselves juggling multiple tasks at the end of the year as they try to close out their financials. Asking the right end-of-year (EOY) questions can reduce stress, help clean up their books, and even uncover tax savings. Here are ten questions that will help business owners finish out the year strong.

1. Did I Dispose of Any Assets?

Encourage yourself to review asset disposals or sales and consider the tax implications, including write-offs or income from sales. Documenting this information is crucial for accurate financial reporting and potential tax benefits.

2. Do I Have Any Errors in My General Ledger (GL) Accounts?

Reviewing the general ledger can help spot errors that could lead to missed deductions or unrecorded transactions. Ensuring accuracy here prevents financial discrepancies and ensures clear and precise financial statements.

3. Are My Bank Accounts Current?

Reconciling bank accounts is essential to avoid missing deductions and ensure accurate financial records. Maintaining current bank account statements allows for a true picture of the business's cash flow and financial health.

4. Can I Collect My Open Receivables?

Uncollectible receivables can be written off, which helps clean up the books and avoids paying taxes on revenue you won’t receive. It's important to chase up any outstanding debts before the end of the year to optimize your financial status.

5. Do I Have Any Old or Obsolete Inventory?

Writing off old or obsolete inventory can free up storage space and eliminate unnecessary insurance costs. This step aids in accurate inventory levels and reduces carrying costs, providing a clearer financial status.

6. Have I Included All Credit Card Purchases?

Capturing all credit card transactions ensures all expenses are accounted for, avoiding missed deductions. This thoroughness supports precise expense tracking and deductibility.

7. Have I Included All Payroll Benefits for the Year?

Review payroll benefits like bonuses and retirement contributions to avoid later complications with tax filings. Ensuring completeness in this area fosters happier employees and clear financial implications.

8. Am I Missing Any Debt?

Verify whether any debt or financed purchases are properly recorded, including deductible interest payments. Properly listed debts can affect your balance sheet and tax obligations significantly.

9. Should I Make Any Year-End Purchases?

Making strategic year-end purchases can reduce taxable income, especially for businesses expecting a profitable year. Planning these expenditures can optimize tax positions and support future business growth.

10. Have I Included All Unpaid Bills?

Properly recording unpaid bills in accounts payable before year-end can lead to potential tax deductions. Overlooking this can result in missed deductions that affect your tax liability.

Taking action on these questions can help you close out the year confidently. Proactively preparing for tax season not only enhances your business's financial health but also reduces stress. Consider contacting our office for further guidance.