Get Ready for 2016: QuickBooks Can Really Help
We’ll be ringing in the New Year soon. Will you have wrapped up your 2015 finances by then?
There’s something very satisfying about turning our calendars to January. It always feels like a fresh start. We resolve to develop new, better ways of using our work and leisure time. We reflect on what we accomplished in the last 12 months, and we look forward to achieving even more in the next 12.
But sometimes we have a nagging feeling that we forgot something. And it often has to do with our finances, both personal and professional.
You can take steps now to make New Year’s Day less worrisome. Doing some extra work in QuickBooks during December will ensure that you’ll start 2016 ready to move ahead, rather than scrambling to see what you missed on January 2.
Taxes and Accounts
You may have already been working with us on tax planning for the 2015 tax year. If you haven’t, and you haven’t been doing so on your own, you need to look at your incoming and outgoing funds for the year before it’s over. Do you need to hold until 2016 some income and/or expenses that haven’t been recorded until 2016? This kind of question really needs to be resolved now.
Figure 2: Time is short, but we may be able to help you make some decisions about carrying some 2015 income and/or expenses over to 2016 if it will help reduce your tax obligation.
Talk to us about your tax situation if you think this may be necessary. We can’t prepare your taxes yet, of course, but we can create some reports and advise you on any situations where you might want to put off — or accelerate — some actions. Is your income running high and your offsetting expenses low? If so, this may be a good time to make a fairly major purchase you’ve been considering.
Odds and Ends
How do you back up your QuickBooks company file? If your QuickBooks is hosted on our Numbers That Work for You! cloud server, you don’t have to worry about this at all!!! If not, please remember: Archiving your data is critical. Think about what would happen if you lost your customer records or a month’s worth of transactions or multiple payments. This is an area where we can provide guidance. Is there a better, safer way to ensure data security? Are there special backup activities you should do at year’s end?
Some companies wait until January to do a physical inventory count. Rather than being surprised in January, you may want to consider doing this now if it’s feasible.
And when you think you’ve entered everything but payments or transactions that may come in at the last minute (unless you’re going to defer these until 2016), all accounts should be reconciled. QuickBooks makes it easy to do this regularly.
Figure 3: Before the end of December, you should do a final reconciliation of all accounts for 2015.
It could be painful to open QuickBooks on January 2 if you didn’t pay extra attention to your finances in December. We can help you ring in the New Year on a more confident note.