Black Friday may be for big corporations but small business Saturday might be for your Kearney business. Are you taking advantage of it?
I think in this environment of so much broken trust, a small business — like yours perhaps? — can steal market share by being authentic and full of integrity. So you have a true opportunity.
But we can ride the Black Friday coattails and remember that customers will absolutely look for deals this time of year. After all, everything is a lot more expensive than before (despite the Fed saying inflation is cooling).
But deals and discounts aren’t everything.
People ARE willing to invest in businesses they believe in, but they can’t if they never find out about you. Do Kearney people know what you’re all about?
If not, that’s something you want to prioritize. There’s still time this week to do it. The U.S. Chamber of Commerce even has this “toolkit” to help you get started.
Because doing even just a little promotion and talking about it on socials, in email blasts, and even by word of mouth will put it on people’s radar. While you can’t make the “horses drink” you can lead them to the good water (aka your business). If you don’t, they’ll find the closest watering hole every time.
We’ve got more to say about that if you want some outside insight. Or if you just want some professional guidance on bookkeeping, accounting, or any other business financial decision, don’t hesitate to reach out:
But, with regard to your books, I’d like to start that conversation right here today. We’re in the last month of 2024 and there are year-end accounting things to get done before it’s over. Let me show you.
A Year-End Accounting Checklist for Your Kearney Business
“Opportunity is missed by most people because it is dressed in overalls and looks like work.” –Thomas Edison
EOY is closing in quickly – which means you’re probably juggling too many year-end priorities for your business. Hopefully, bookkeeping is somewhere near the top of your list.
Because even seemingly minor bookkeeping mistakes from this year that sneak into 2025 unnoticed can mean significant tax penalties when filing season arrives and can result in skewed budgeting and cash flow problems.
You want to close the books in 2024 with a clear conscience, and a solid grasp of your business’s financial standing – so you’re in the best position to have a financially healthy 2025.
So, here’s a short bookkeeping checklist to help you during your year-end accounting process:
1. Gather Your Financial Records
You’ll want to start with the big three – your income statement, balance sheet, and cash flow statement.
Overall, you’re checking for the accuracy of your records by 1) making sure all income streams match your invoices and are properly categorized, 2) making sure expenses are categorized correctly and are supported by receipts or documentation, and 3) identifying any overlooked deductions (like mileage or equipment depreciation, for instance).
2. Reconcile Your Bank Accounts
Start by gathering your bank statements for all your business accounts (including credit cards and loans) for the year. Then pull out your general ledger or bookkeeping software for comparison.
You’ll want to check that…
- Your opening and closing balances for the year match.
- Every deposit, withdrawal, and transfer matches your records.
- Items to be reconciled (outstanding checks or deposits) are clear in the next statement period.
- Any duplicate or missing entries, or transposed numbers, are adjusted in your records in the correct category. (Or, if it’s a problem on the bank’s side, give them a ring as soon as you can.)
3. Get Payroll Records in Order
Make sure everything is squared away with your payroll records by comparing them with your general ledger and bank statements. Check that wages, taxes withheld, and benefits all match up (and that all payroll tax deposits have been reported, either on Form 941 for quarterly or Form 944 for annual).
If you find something’s amiss, you’ll need to file adjustments with the IRS through Form 941-X ASAP.
Then, get a head start on prepping employee tax forms (which have to be distributed by January 31). You’ll use Forms W-2 and W-3 for employees, and Form 1099-NEC for contractors or freelancers. (And if all these IRS forms have your head spinning, my door is always open for a chat: bookgbs.com).
4. Review Payables and Receivables
Now, if you use an accrual accounting system: You need to review your payables (outstanding bills sent to you) and receivables (outstanding invoices you’ve sent out) to see if you need to settle any missing invoices during this year-end accounting process.
For receivables – you’ll want to run an aging report (a tool most accounting softwares offer to keep track of invoices and amounts owed) to find overdue invoices. Contact these customers who have yet to pay as soon as possible, because uncollected receivables can still count as taxable income.
And be sure to cross-check your accounts receivable ledger with your income records for any missing payments.
Then, for payables: Run an aging report to get an overview of your unpaid bills, and figure out which ones you need to pay first to avoid penalties and fees. Check vendor statements to make sure all your bills are recorded, accrue for outstanding expenses (like utilities or services performed), and make sure any recurring payments are recorded for the full year.
Now, this is just a basic checklist to help you in the midst of the year-end accounting mayhem you’re probably feeling. Believe me – double-checking your records in these areas will go a long way in setting you up for an easy tax season next year (and helping you achieve your 2025 financial goals).
Want to talk more about how year-end bookkeeping can start your Omaha business off on the right footing next year? Grab a time on my calendar:
bookgbs.com
To better financial groundwork,
Mick Unick