The End Of The Year Accounting Checklist
We concluded the last year but it has not dawned on some individuals that we are in a new year. 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. Let’s take a look at the checklist that helps you get over the past year through the end of year accounting.
The first thing that you will have to do is to review your last year’s income and the expenses as well. When you are accounting for the ending year, you will be able to tell the accomplishments that you made in the year and also get the chance to determine what to aim for in the upcoming year. You might have been impressed by your accomplishments in the last year or they might not have been impressive. The National Financial Capability study shows that most individuals ended up spending more cash than they ever earned in the year 2015 which is a scary statistic. To get over this, you need to forgive yourself and move forward and the next year is a new chance to take care of your finances. Getting organized is the only way that you can have a greater next year and also make your end of year accounting easy and efficient.
It is also advisable that you take time and consolidate your income and tax documents. It will be easier for you to file taxes when you consolidate the tax documents. Some of the documents which you need to help file taxes include the W-2s, alimony received, proof of health insurance, mortgage documents, 1099s and other documents which make sure that IRS understand your income and your expenses.
For your finances to take care of you, you also have the responsibility of taking care of them, and one needs to be serious about the end of year accounting. You might have gone through this checklist but you are yet to understand about how to handle your end of year accounting, and the best solution is to seek an individual who is trained and educated to handle the accounting process. 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 enjoy your next year, it is advisable that you plan monthly budgets although at times you will have to make shifts due to shifting in avenues and lifestyle. If you have outstanding debt from shopping in the past year, work to eliminate the debt.