It’s that time of year…time to prepare your organization for the end of year bookkeeping tasks. Take the time to prepare now so you’re not caught off guard.
1. CHECK YOUR PAPERWORK.
Ensure you have all your invoices, receipts, purchase orders, payroll records, and bank statements on file. We prefer a paperless environment. You can do this easily with a smartphone camera and a cloud-based file system like Sharefile, Google Docs or Dropbox.
2. UPDATE YOUR FINANCIALS.
If you don’t do it every month, make sure your financial statements are in order, so you can easily send them to your CPA in January. We'd be glad to help you on the cleanup side. We love Quickbooks Online for simple, easy-to-use, cloud-based bookkeeping software.
3. SEND FORMS 1099-MISC.
This oft-forgotten tasks leads to needless headaches, fines, and missed deadlines for organizations. Send 1099-MISC forms to all your vendors by January 31, 2019. The IRS requires you to send one to any sole proprietor or LLC you pay $600 or more in the calendar year for “rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate”. Penalties are steep for delays and non-filing, so ensure you prioritize this tasks. If you need our help, we charge a small filing fee per form. In order to meet the filing deadline, we will need all Forms W9 in hand by January 15th.
4. RECORD YOUR PAYROLLS.
Your payrolls should be recorded and payroll taxes paid and filed for each quarter. Make sure you include your year-end bonuses on your last payroll of the year. Payroll vendors such as ADP , Gusto, and Clergy Financial (for churches) are great providers for cost-effective, fully-outsourced payroll service. If you use a vendor, pay attention to their year-end updates, including verifying employee names, addresses, and social security numbers for accurate W2 reporting and delivery.
5. UPDATE YOUR MILEAGE REIMBURSEMENT RATE
Beginning on January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will change (sometimes up, sometimes down). Ensure you update your expense reimbursement forms and notify your staff and volunteers to use the new rate when requesting reimbursement for miles driven in 2018.
We hope you have a headache-free end of the year bookkeeping experience. If you need any assistance please contact us, and we'd be happy to work with you.