The start of the year is a busy time for most people, but when you own a business, it can be especially hectic. There are many tasks that need to be taken care of to ensure your company starts the new year primed for success. Among these, closing your books and doing some tax prep is of the utmost importance. This will give you a good idea of where your finances stand and make the tax filing process much easier. Here are a few accounting tips to help your organization get ready for the year ahead.

Business Accounting Tasks for the New Year 

1. Review Profit & Loss Statement

Running your financial reports at the end of the year is essential for helping you make an accurate business plan. Your profit and loss statement will tell you how much the company earned and spent, allowing you to see where you should start making changes to increase profitability. You’ll also be able to evaluate which practices seem to be working well for your business.

2. Collect on Open Invoices

If you have any accounts that still show a balance, now is the time to begin collecting what’s due. Send final invoices to clients reminding them of their outstanding payments. Clearing these balances will make tax prep simpler when the time comes. 

3. Get Organized for Tax Season

Even if you don’t plan to file your taxes right away, it’s wise to get started on your tax prep early. Waiting until the last minute will cause unnecessary stress and may leave you scrambling to find important documents. Organize all your financial records, including expense reports, receipts, bank statements, and last year’s tax return, so they’re readily accessible.

4. Consult a Professional

Speaking with an accounting and tax professional will help ensure you understand your business’s finances so you can make more informed decisions and build a solid plan with realistic objectives. They can also provide you with effective strategies to minimize your tax liability, such as making charitable contributions, deferring income, and stocking up on business necessities. 

If you’re looking for a reliable accountant to manage your bookkeeping and tax prep needs, turn to JJR & Associates LLC. The experts will thoroughly assess your company’s financial situation to determine ways you can become more profitable and fulfill your goals in the new year. Backed by over a decade of industry experience, they provide entrepreneurs throughout the Atlanta, GA, area with a wide range of services designed to help keep business operations running smoothly. Call (404) 437-7748 to schedule a consultation or visit them online to learn more about their offerings.