What Have You Done to Prepare for Year-End?

If your accounting system is current and reconciled monthly, you are already on the right track! If not, now is the time to research and resolve discrepancies so the year can be closed with confidence.

Tips and Reminders

  • Reconciliations & Year-End Processing
    • Establish a schedule and allocate responsibilities.
    • Follow up on and resolve outstanding issues.
    • Clean up reconciliations and update filings.
    • Thoroughly review trend reports, revenue, accruals, and budget versus actual.
    • Timeliness is a key overall practice, but this is especially critical at year-end for tax preparation and for reviews or audits, as applicable.
    •  Link to guide on reconciliations
    • Additionally, procedures for closing the accounting year may be different than month-end closing for your system. Refer to your accounting or ERP systems’ specific instructions.
  • Prepare Forms 1099 Due to recipient by February 2, 2015
    • Follow up on missing Forms W-9.
    • Refer to my linked 1099 article for further information and refer to irs.gov for current year deadlines. Link to 1099 article
  • Prepare Forms W-2 Due to recipient by February 2, 2015
    • If payroll is processed via a third party such as ADP or Paychex, they will likely prepare Forms W-2 on your behalf. However, if this is your first year with a new payroll provider, confirm that they are responsible for preparation and do not assume.
    • All earnings must be processed through the payroll system so that taxes are appropriately withheld in addition to accurate reporting of earnings.
      • Gross earnings include base wages, gift cards, bonuses, and other supplemental wages.
      • Speak with your payroll provider for additional information
    • Form W-2 is based on actual payments made to the employee in the tax year, regardless of whether the employer is a cash-basis or an accrual-basis tax payer.

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