Tis the season to gear up for tax time! Making sure your books are organized and accurate before your accountant sees them will save you time and money. Preparing your books for 2016 tax returns doesn't have to be a chore if you get started now.
First of all, check your reports to be sure that all transactions are recorded in the right accounts. Accounting software is a fabulous tool, but it can be easy to click the wrong category, customer or account when posting expenses, bills and payments. Correct any posting errors you find.
Make sure you've been receiving payments properly. Instead of just making deposits, apply payments to customer invoices individually to ensure open invoice balances are correct.
Consider purchases and sales. Did you buy any new office equipment like computers or phone systems? Did you sell any old equipment like vehicles that depreciate? Make sure your accountant knows.
Supply the right documents. Every business is different, but here's a basic list of what your accountant may need to file your taxes:
Need help? Contact us at Reconciled It and find out how our online bookkeeping and accounting services can free you up to do what you do best.