End of Year Accounting Reminders for Consultants

I hope you have enjoyed the past days gathering with family and friends.  It is good to change up our schedules and pause to ring in the New Year.

I wanted to remind you of a few things…not my favorite thing to do, but important so that you will have less stress in your business and in getting ready for your tax return.

1. Write down the odometer reading on the vehicles you use for business.  It is important to know what percent you are using the vehicle for business and the amount for personal.  You should have a mileage log, but even if you just write down your odometer once a year, you’ll know how many total miles you drove for the year.
2. If you carry inventory, you are required to do a count once a year showing the value.
3. Collect any W-9’s from vendors.  Verify if you paid anyone over $600 that will require a 1099.  You will also need to send out a 1096. Call the IRS to get FREE forms: 1-800-829-3676 (will take 2 weeks).
4. Back up data from the computer.  Double check the back ups are copying correctly.
5. If you have payroll, verify if your EDD employment rate has changed for the upcoming year.  You should have received a letter with the percentage early December.
6. Copy thermal receipts.  Many receipts that you get from office supply stores, gas, etc, are on thermal paper.  The image will fade over time.  Make a copy of the receipt because if you are audited, the IRS will want to see the details, not the credit card statement.
7. Verify when corporate minutes will be due for the coming year and mark the calendar.
8. Review your business plan and make any necessary changes.  What to you project your gross revenue to be for 2012?  How will that compare with 2011?  What will you do to increase your profits for the upcoming year?
9. Set closing date and password on QuickBooks file.