If you are not regularly having your bookkeeping completed, now is the time to do so. In order to be prepared make sure to gather the following information for your bookkeeper:
- Bank statements
- Check register or check stubs
- Paid invoices
- Deposit information
- Sales information
- Accounts receivable information
- Accounts payable information
- And information about other transactions such as loans, credit card statements, and any other items that need to be entered to accurately reflect what happened in your business
Review all information for completeness before handing it over to your bookkeeper. They will then be able to reconcile your bank and credit card accounts, record cash receipts and disbursements, adjust your accounts payable, and adjust entries as necessary. Adjustments to be made include:
- Writing off uncollectible accounts receivable
- Gains or losses
- Prepaid asset amortization
- Depreciation
- And interest expenses
Once the information is processed, your bookkeeper will prepare your financial statements including:
- Balance sheet
- Statement of income
- General ledger
- Other reports as needed by your business
The importance of accurate financial information cannot be overstated. Bookkeeping helps you to evaluate your business as well as make tax return preparation easier. It helps you to determine what’s working as well as what’s not working. Strong and reliable financial records are just as important when dealing with tax compliance checks.
If you don’t yet have a bookkeeper and would like to find out more about our services, fill out our bookkeeping questionnaire. We’ll review the information and discuss with you what the best options for your situation would be. We are ready to help you!
