WOW! - where did the time go?
Can you believe that October is already here? In a few short months we will, literally and figuratively, close the books on 2020.
From a bookkeeping standpoint there are numerous things that the business owner can do to assist with the end of year bookkeeping close out task.
Time and space won’t allow us to look at all of them and to be honest, many of them are best left in the hands of your bookkeeper or accountant.
So let’s just look at what can be considered to be the top 3 things that you can do right now.
This year has been anything but ordinary. COVID -19 has resulted in many changes. One of those changes that has had quite an impact on businesses are PPP loans.
Have you started on the forgiveness process yet? -- Yes.
That’s probably not a bad thing. You do want this liability off your books before it turns into a loan.
I would wait before actually submitting the application however…at least until a final decision is made on automatic forgiveness.
It’s looking more and more likely that one won’t be made until after the elections so breathe.
You can find the application as-well-as instructions for forgiveness here but remember to breathe. You have some time.
In a related note are EIDL loans. Did you get one?
If so, they like most loans must be amortized or tracked. Having a separate bank account for these funds makes this task so much easier.
There are 2 other related things you can do that would be helpful and hopefully your bookkeeper... you are all working with one right...please say you are 😊
I jest, not everyone needs a bookkeeper - at least not all the time. It’s wise to have one look things over, at least once a quarter, though.
As I was saying, hopefully your bookkeeper has been able to assist you throughout the year in making the financial decisions that will enhance the growth and profitability of our business.
At the very least, he or she should have you prepared for taxes.
The mad rush and the headache that often comes with it need not be some yearly rite of passage. It can and should be a time of strategic planning and, believe it or not, anticipation... No I am not joking.
Getting down from my soapbox.
Two other super helpful things that you could do right now would be to make a quick check on your accounts receivable (AR) and Accounts Payable (AP). Run an aging report on both these items. It should allow you to catch all the problems.
If you are uncomfortable running the aging report, simply do a visual of your overdue by 60 and 90 day AR & AP figures and correct any issues – have you already collected on some of those receivables…do you need to resend some invoices…have you already paid some of those bills?
You do want to have everything correct and up to date because, to a large degree, this is what your financial statements and ultimately your taxes will be based on.
Why not set yourself up to win?
Mike Coombs – Flawless Bookkeeping Services
Flawlessbookkeepingservices.
No comments:
Post a Comment