Thankfully 2020 is coming to an end.
COVID-19 took over 2020, and wowsers, this has been a busy year! I think half of my marbles are still on the floor. There have been several changes for each of our firms and our client’s businesses. We have learned how to navigate PPP (sort of) and a whole onslaught of different obstacles.
It’s totally refreshing to think forward to 2021. So, let’s close out this hellish year. The tasks we need to do this year-end are longer than ever before but, start with the easy stuff and work your way through.
Liz_QBO_Year-end_Fig-01
This is the first year that we have had a robust set of closing tools built into QuickBooks. These new tools are where to begin.
- Work through the New Month-end review in QuickBooks Online
- Ask the client for cash receipts
- Review receivables
- Run the last payroll of the year and verify employee details are up-to-date
- Review open vendor bills and look for missing 1099 vendors details
- Prep 1099s and W-2s
- Review mileage (and related documentation)
- Check inventory
- Review checking account, credit card, and loan balances (including vehicles)
- Send financial reports to the client and ask for them to review them – often, they have input
Liz_QBO_Year-end_Fig-02
After all these steps are finished, close the books on 2020!
It's normal if you feel lost and overwhelmed, but as the year-ends, it’s exciting to look forward.
Murph's commentary:
I for one am more than ready to sing "Auld Lang Syne" to 2020 even though I shall sing it in front of my fireplace alone without a gathering of friends due to Covid-19.
And with that said, let us all just anticipate that 2021 will be a better year.