A “Carefrontational” Wrap to 2020: Get Your Books In Order.
At DashboardNY we believe in “carefrontation.” That means telling you the truth, even when it’s a hard truth, because we care about your success. So after congratulating you for surviving this long, exhausting year, I need to tell you that you can’t just coast your way into 2021 in the hopes that you’ll be energized in the new year. You’ve got work to do right now.
'Tis the season for projections and tax planning
First off, you need a complete and accurate set of books. With that, you'll have the insights into your past to let you project your future. And your tax advisor can use that same set of accurate and up-to-date financial records to give you strategic tax advice.
To start, consider the following:
When was the last time you did a proper reconciliation on your accounts?
How many transactions have not been entered since that reconciliation and what is the plan for getting all this data into your system?
Do you have all the documentation for your transactions saved in an organized manner, whether it’s copies of receipts or an electronic record of your invoices? You may need these things for tax purposes, in case you get audited.
Speaking of taxes, January 31st is the deadline for Form 1099-MISC with an amount in box 7 (Nonemployee Compensation). Needless to say, make sure that you have W9s from all your vendors. If you don’t, request them now!
Holidays are happiest when you stay on top of your business concerns
Are you considering bonuses? Have you spoken to your payroll company about how to do that? Are you aware of your payroll cycle and how that will be handled effectively?
Do you have a PPE loan? If so, are you applying for forgiveness? Have you spoken to your tax accountant on the impact of non-deductible expenses?
Remember: Every time a bookkeeping system migrates to the cloud, an angel gets its wings!
One of 2020’s lessons about the breakdown of the traditional office is the importance of online systems. So, if you haven’t already migrated your accounting system to the cloud, it’s past time you did so. QuickBooks Online is more powerful than ever, and with 3rd party applications, you have the capacity to address the majority of business processes through a suite of tools like Tsheets, Bill.com, and Webgility.
If you've started doing your own bookkeeping in QuickBooks Online, here's a guide to help you out. If you need more help, that’s what we’re here for.
For many businesses, 2021 will be the year of digging themselves out from the hole of 2020. For the sake of your community and for the economy at large, we need your small business to thrive, and that starts with a solid financial foundation. It may be hard but it will be worth it.
If you need help with your financials we are here, always ready to give you the assistance and tell you the hard truths. Just give us a call!
Visit us online at www.dashboardny.com or call (516) 385-2333.
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