As 2024 draws to a close, the excitement for a new year begins to build. However, before you ring in 2025, it’s crucial to get your business affairs in order!
The end of the year often brings a flurry of activity for small businesses. For many, December 31 marks the end of the fiscal year, leading to a mad dash to finalize tasks while also savoring precious family moments during the holidays.
Even if your fiscal year doesn’t end in December, taking proactive steps now can set you up for success in 2025. Here’s a checklist to help you prepare for the upcoming year.
1. Reconcile Bank and Credit Card Accounts
Verify your accounting records against your bank and credit card statements. Use the Reconcile function in QuickBooks to ensure your balances align. Don’t forget to account for any fees or interest charges.
Additionally, check for old uncleared transactions, such as checks older than six months, which may now be stale-dated.
2. Review Accounts Payable
Take stock of your outstanding obligations. If you’re using QuickBooks Online Essentials or Plus, run an Accounts Payable Aging Report. Look for any old bills—these could be duplicates that need to be voided.
Request final invoices from suppliers for 2024 to ensure you have everything covered for tax purposes. If you file GST/HST returns, remember to adjust for any missing invoices in your next filing.
3. Review Accounts Receivable
Pull an aging receivables report to see who still owes you. For any uncollectable invoices, make necessary entries for Bad Debt expense. Consult with your accountant about the regulations surrounding this process.
4. Review Financial Reports
Gain insights into your business’s performance by pulling key financial reports: Balance Sheet, Profit and Loss (Income Statement), and Statement of Cash Flow. Look for any discrepancies and compare these reports with previous years using QuickBooks Online’s comparison feature.
5. Prepare Tax Documents for Your Accountant
Gather your financial reports for your accountant, and review them for accuracy. Ask your accountant for a checklist of additional documents needed for year-end, such as auto expenses and home office costs. Consider granting your accountant access to your QuickBooks file for seamless collaboration.
6. Backup Your Data
Use the holiday break as an opportunity to back up your data. If you haven’t yet, consider a cloud-based storage solution. Regular backups are essential to safeguarding your business information.
7. Conduct an Inventory Count
If you maintain physical inventory, now is the time for a count. Consider using an app to streamline this process. QuickBooks and various Point-of-Sale (POS) systems offer integrations to help automate your inventory management.
8. Double-Check Payroll
Generate a payroll summary report for the year and ensure your liabilities match your PD7A remittances. Address any discrepancies promptly. If applicable, do the same for WSIB.
9. Update Contact Information
Request updated information from your employees, customers, and suppliers. Make sure your records are accurate, as this will be essential for filing T4s and T5018s. Proper contact information will also aid in following up on receivables.
10. Assemble a Mileage Log
If you travel for business, set up a mileage log to claim deductions and prepare for potential audits. Consider using an app like Everlance or leverage QuickBooks’ mileage tracking feature.
Final Thoughts
Once you’ve ticked off your year-end tasks, take a moment to envision your goals for 2025. What achievements do you aspire to? Identify small daily actions that can lead you toward those goals.
Remember to schedule company events and carve out time for your well-deserved vacation in 2025. You’ve earned it!
If bookkeeping is becoming overwhelming or you need a one-time cleanup, contact us for a free quote on our services!
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