For accountants and their business clients, the goal this time of year is to end the year well and set a good foundation for the next. But year-end work is rarely simple, often messy, and certainly adds to the holiday hustle and bustle.
Let’s take a little time to breathe. Let’s look at some ways to set up future year-ends run well and make these next few weeks a little easier.
Repeatable, repeatable
Documenting the year-end close processes is a good way to solidify the work necessary to close the year for clients. Evaluate the steps needed for most clients and identify which tasks are repeatable. Document this workflow into a process for the entire team. Look at the processes for each month-close and Identify the unfinished tasks. If month-end tasks are executed well throughout the year, year-end will be much easier.
Similarly, keep an eye on areas that can be automated. Take note of these tasks and work toward automating them over the coming weeks (perhaps even after the year-end close is completed) to make this time next year run more smoothly.
The dance of W9 and 1099
It’s hard for accountants to think about this time of year without visions of W9s and 1099s dancing in their heads. The work required for 1099 filing can be a month’s worth of back and forth with clients. Tip: Send reminders via QuickBooks.
But there are some things to do to help. When possible, think about what help can be provided to clients to assist in W9 collection. Helping clients prepare a “packet” (electronic or otherwise) to provide to each vendor or a checklist to ensure all information is collected correctly may ease the back and forth for next year.
Evaluate types of clients
This time of year accountants are getting phone calls and emails from one particular type of client - clients who haven’t called since last year. Tax-only, year-end-only, or less complex clients have often been stuck in an accounting no man's land; the needs do not necessitate a full onboarding, but operating outside of the tools or system used for every other client isn’t wise either.
If a practice serves many of these low-complexity clients, consider what processes could be introduced to best organize this work. Consider technology options that would serve these clients and your practice.
Take on reconciliations
Accountants are tackling reconciliations throughout the year, but the mountain seems a little steeper at year-end. For larger clients with a higher volume of transactions, the task is even more daunting.
Leave as much time as possible to have space to tackle the most gnarly reconciliation challenges. No matter how vigilant the reconciliation process is during the year, there will be challenges to close the books. Leave space to tackle these.
Assess your software solution as well. Let a tech stack assist in this crucial year-end step.
Check in on Chart of Accounts
Chart of Accounts are a critical part of organizing and reporting on revenue streams and expense categories. Throughout the year, Chart of Accounts can devolve quickly with new additions, child accounts, one-time payments, and other entries that do not fit neatly into the original structure.
Take time to do a little cleanup.
Delete any unused or duplicate accounts. Evaluate if naming conventions are clear and used correctly. If using Chart of Account templates, assess what changes can be made to the structure and take time to edit.
And most importantly…
Take time to check in on teammates, co-workers, and clients. This time of year can be stressful in and outside of work. Encourage each other. Tell your teammates you appreciate them. In communication with clients about items needed for year-end, check in and see how they are doing. The end of the year can be a little brighter for everyone.
For more information on how QuickBooks can ease year-end stress, the Intuit team would love to meet with you. Schedule a free consultation.
Amanda Thompson works on the Intuit QuickBooks Accountant team, developing content relevant to the accounting industry. Before joining Intuit, Amanda worked in marketing at a Top-40 accounting firm where she developed and amplified the firm’s digital presence and thought leadership content.