With the end of the year approaching, preparing your accounting information ahead of schedule is always ideal. This will make tax filing and form submission much less of a hassle. With this checklist, your team can plan ahead and avoid any difficulty.
11 Steps for Human Resources to Get Ready for Year-End
- Pay Vendors and Contractors: Always be sure to fully pay your vendors and contractors. Check with your accountant to see if your contractors need to submit a W-9 form. By January 31, each contractor should have also filled out a 1099-MISC form.
- Review Clients: Review client contact information, and confirm that all details are correct.
- Review All Employees: Be sure to verify that your payroll contains only current employees and that their information is correct. Ensure that previous employees cannot access company systems.
- Compliance Reporting: Send applicable year-end compliance notices, and prepare Form 1095-C for ACA reporting.
- Prepare Payroll Records: Begin to gather this information. If you’ve partnered with payroll experts like LBMC Employment Partners, we’ll ensure that there are no issues and that you comply with all regulations. Be sure to review FLSA status to ensure you are still meeting the new FLSA thresholds.
- Profit and Loss Report: Generate a profit and loss report, as well as a balance sheet, and identify what your business did well and what could be done better for next year.
- Review Profitability: Generate an income statement and review each revenue-generating item, as well as each tax-deductible expense. Cash flow reports are vital documents for your business, as they indicate how much cash your business has readily available.
- Estimate Taxes: If you pay tax payments quarterly, be sure to keep track of what you’ve already paid. This will help you determine what you’ll need to pay at the year’s end. Don’t forget to include taxes from bonuses given to employees, as these are also subject to any taxes applicable to regular pay.
- Tax Deadlines: Depending on the structure of your business, tax dates will vary. Verify your deadlines.
- Tax Payments: Keep tax payments secured separately, and be sure to include enough to cover both state and federal taxes.
- Goals: Review what you were able to accomplish this year, and develop goals for the next year to keep you motivated and growing.