Your Year-end Checklist for 2024
It may not even be Halloween yet, but it’s already time to start thinking about your year-end financials and tax preparations for 2024. The better prepared you are, the easier it will be for your bookkeeper and tax preparer to do their jobs.
Here is the general checklist I give clients, whether they are self-employed or an S-Corp.
Set your appointments
I recommend contacting your tax preparer and me now to get on our calendars. I will only be taking new clients through the end of November, so I have plenty of time in December and January to do everyone’s paperwork. That also allows me enough time to help you with any bookkeeping cleanup you might need to prepare for your tax appointment. If you need help finding a new tax preparer, refer to this blog to inform your decision.
Catch-up on Bookkeeping
I know that you will have additional entries for the end of the year, but now is a great time to catch up on your bookkeeping as much as you can if you haven’t been maintaining it regularly already. This includes getting as many transactions as possible entered into your accounting software or spreadsheets, whichever you use. Also, reconcile all your bank and credit card accounts through the end of the month. Finally, look up any loan or other line of credit balances at your bank to verify the status.
Update Payroll Forms
Whether you have employees or have paid non-employee contractors for their work, you must ensure that all your forms and information are up-to-date.
If you have W-2 payroll for you or your employees, you must complete several tasks.
Verify all employee names, addresses, social security numbers, and other vital W-2 information,
Calculate any year-end bonuses, and
Get ready to send the W-2s to your employees (Remember that your employees can only receive their W-2's electronically if they opt in for that. Otherwise, you have to mail them a printed form. Your payroll software should have a way for you to receive their consent.)
If they consent to receive the form electronically, make sure you have a current email address on file.
If you pay independent contractors or other workers in your business, but they are not on the W-2 payroll, make sure you have a W-9 for each person. You will need that information to issue them a 1099-NEC in January. Even if you obtained one when they started, I suggest verifying that all the information is correct to avoid delays in getting them their forms. You would be surprised how many people move in a year! You’ll also need a current email address and their consent if you want to send the 1099-NEC forms electronically.
As I mentioned above, I won’t be taking any new clients in December or January, so if you need help cleaning up your books, please contact me now! If you are an established client, please be sure to respond ASAP to any questions I have so that your books will be ready for tax prep as soon as January ends.