Your Year End Checklist!

Because many of you have asked, we have put together a list of items to consider as you are preparing to close your calendar year and prepare for the New Year. B2 Legal Management Accountants will assist you in handling many of the routine end of year tasks. Please let us know how we can assist further – we are here to help!

Wishing everyone a safe and happy holiday season!

Things to do before December 31st

1. Look at your Profit & Loss report. Where do you stand? If you have a larger than expected profit, are there any major purchases you should make now that can be depreciated? Make sure you have the cash. Talk to your accountant if you are not clear of the depreciation rules.
2. Verify loan accounts and cleanup them up if necessary.
3. Work on reducing your receivables (follow-up with clients to get paid!)
4. Write off bad debt if necessary but work on getting paid first.
5. Make SEP IRA or 401K contributions and donations to charity to reduce taxable income. (Consult your tax advisor)
6. Verify your 1099 information is setup properly in your accounting system. If you don’t have proper information from each vendor (name, TIN# etc.), ask for it now, then create a form to use every year. Need help making this happen in QuickBooks? Just ask us.
7. Begin to think about year end bonuses or special gifts. Will you give these this year or in January? It depends when you write the check.
   Look for fringe benefits you should report on W-2’s. Some of these could include health & life insurance, transportation subsidies, moving expense reimbursements, educational reimbursement programs, and employee loans you’ve forgiven.
8. Take a physical inventory of your products and make adjustments in your accounting system as necessary.
9. Write a list of all the company’s major accomplishments for the year. Be prepared to share this with your staff, they will appreciate it.
10. Write out your goals and plans for the next year.Create budgets for the next year if you work on a calendar year fiscal basis.
11. Check all of the links on your website to make sure they are active.

After January 1st

1. Reconcile all accounts – bank and credit cards – in your accounting system.
2. Verify you’ve made all entries in Petty Cash. If you made the purchases last year, make sure to use that date.
3. Verify you’ve made all entries for items you’ve paid for with personal funds.
4. Print year end reports. At a minimum you should have a Profit & Loss Statement and a Balance Sheet. We also recommend reviewing Client Collection figures sorted by total dollars so you know who your largest customers were.
5. Make depreciation entries (may need help from your accountant). You should have the following information on each item: date of purchase, purchase price, make, model, serial number, year, and whether it is new or used. Effective in 2016, you are required to expense small acquisitions $2,500 or less.
6. Make any adjusting entries for accruals of payroll tax liabilities or pre-paid expenses (get help from your accountant).
7. Print and mail payroll forms if you do it yourself (W-2, W-3, 940, 941) by 1/31.
8. Print and mail 1099-MISC to independent contractors (by 1/31).
9. Print and mail 1096 to IRS by 1/31

New Changes to Consider

1. Partnership and S-Corp returns due by March 15, 2017.
2. Corporate returns due by April 17, 2017.
3. Individual returns due by April 17, 2017.
4. The deadline to issue 1095’s to Employees has changed from January 31st to March 2nd. (Consult with your payroll provider). Required forms to the IRS are due 2/28 or 3/31 if filing electronically.

B2 Management & Consulting would like to thank you again for allowing us to handle your accounting and bookkeeping functions. If you would like to discuss any of the items listed above in more detail, please don’t hesitate to contact us at 512-381-1500. This list is not intended to be inclusive of all items needed for your year-end planning. Please consult with your CPA also.