2023 Year End Checklist

2023 Year End Checklist

Hey, Small Business Client!

Ok, we are almost through 2023!  It really doesn’t seem possible.  But it has been a rough year over here, so I am kinda glad to see it go!

What you need to do:

  • Read, sign and return your 2024 Engagement Letter!  Those are going out via email.
  • Review any 1099 expenses:  These are payments made to individuals for services who are *not* employees.  Anyone who received more than $600 will need to be issued a 1099-NEC.  These are due January 31.  We will need names, addresses, SSNs and total amounts paid.  Please don’t wait on this!  An easy way to get the needed information is to have anyone you pay for services fill out a W-9.
  • Review suspense and uncategorized expenses:  These are things that I don’t know what to do with!  There could be personal expenses mixed in, or maybe business expenses that have not been categorized correctly.
  • Do you use QBO to send invoices?  Take a look at your Accounts Receivable report.  Does it look like reality?  If not let me know and let’s get it cleaned up.
  • Do you run payroll?  Did you get this SUTA rate from the Ohio Department of Jobs and Family Services?  Send me a photo so I have your Ohio Unemplayment rate correct.
  • Review owner draws:  Please scan the owner draw (or owner pay and personal expenses) account.  Make sure everything in here is a personal expenses, not a business expense.
  • Review estimated tax payments:  Double check all your estimated tax payments.  I try to catch if they run through a business account.  It will save a lot of time when we are working on your tax return!!
  • Collect auto mileage:  You should have a mileage log, either a paper diary, or use an app on your phone like MileIQ.  I have been telling all my clients for YEARS that you need to actually track your mileage, “Same as last year” or “About 70%” is *NOT GOOD ENOUGH*.  The IRS will deny that expense.  IF you do not have a mileage log START ONE TODAY.  Then go back through your 2023 calendar and reconstruct.

Also, if I have access to your bank account, please consider adding my office phone number as one to receive texts for multifactor identification.  It really saves a lot of time, since every time I reboot (which I have to do for security reasons) I lose the connection.

Let me know if you have any questions or find things that need corrected.  It is so much easier to do now instead of in the heat of tax season.

What I do:

  • Reconcile all checking, savings and credit card accounts:

Why?  This ensures we are not missing any income or expenses, also catch if transactions have been doubled up (it happens).

  • Reconcile payroll for the year:

Why?  This ensures that payroll is being reported correctly on tax forms.  It can also catch problems with payroll tax payments, or identify payroll checks that have not cleared.

  • Review all balance sheet accounts:

Why?  We look for any accounts that are “out of whack”.  These are red flags that could reveal missing income or expenses.

  • Review all income and expense accounts:

Why?  Is anything doubled up or missing?  Or in the wrong place?

I will also be closing out all the annual Commercial Activities Tax accounts, as that tax is essentially going away.  If you are a quarterly CAT filer we need to double check whether or not you will still need to file.

I am working as hard as I can during December to get my business clients all clean and pretty.  In the first week of January I will be pulling December bank statements and getting December sales tax filed.

Thanks!  Let’s get it all done 😊

By |2024-01-03T12:01:13-05:00November 27th, 2023|Small Business|Comments Off on 2023 Year End Checklist

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