The End Of The Year Accounting Checklist
Here we are at the beginning of a new year, but it has not dawned on many individuals the reality that the past year is gone. One needs to get through the holidays and also write some resolutions, and most importantly one also needs to file taxes. There are chances that such expectations may leave you feeling overwhelmed, but such a feeling is common. When you need guidance at the end of year accounting that helps you shape the upcoming year, here’s the checklist.
The first step when you are making the end of year account is doing the review of the past year where you will compare the income and the expenses. You need to look back at the previous year to get an idea of what you accomplished as this will help you decide what you will aim at accomplishing in the New Year. You might be impressed by your last year’s accomplishments or you might not. Statistics according to the National Financial Capability study have revealed that in 2015, more than 18 percent of Americans spent more cash than they earned. If you are in such a condition, you need to get over it by forgiving yourself and moving forward as the new year presents you a chance to take care of your finances. If you want to move through your end of year accounting efficiently and with ease, the essential step to help you is getting organized.
It is also advisable that you take time and consolidate your income and tax documents. Consolidating the tax and income proof from your previous year will help you when you have to file taxes. The documents which you need when you need to file taxes include W-2s, proof of health insurance, 1099s, mortgage documents, alimony received, and any other document which helps IRS to get accurate understanding of your expenses and income in the last year.
You need to take care of your finances, and they will continue taking care of you, and one should take end of year accounting seriously. If you have gone through this checklist and you still aren’t confident about taking care of your accounting, then you can consider finding a trained and educated individual to handle it. If you seek accounting services such as those available at mcnewassociates.com, you will learn the difference between a decent accounting job and great accounting job.
To make the next year a great one, start it by having a planned and feasible monthly budget but at some point, you might shift from the budget due to lifestyle and avenues. If you have accumulated too much debt from shopping; there isn’t any stage that isn’t right to start clearing the debts.