Wk40-Start EOY Bookkeeping Prep
Mind Your Money
As we approach the beginning of the fourth quarter, it’s a busy time to wrap up projects and get a jump on your end-of-year bookkeeping. Whether you manage your books yourself or have an accountant, setting aside extra time now can make a difference when tax season rolls around. Let’s dive into why and how in this week’s habit!
Habit of the week:
Wk40-Start EOY Bookkeeping Prep
Now is the perfect time to start your end-of-year accounting. By scheduling an additional 30-60 minutes each week, you can make sure that your financial records are up-to-date and comprehensive, making tax filing smoother and less stressful.
Why it matters:
As web designers, our end of the year is always bustling with activity, and it's easy for bookkeeping to take a backseat until it becomes overwhelming. Proactively managing your financial records now will save you time and headaches in the new year. Plus, it gives you a clear picture of your fiscal health and aids in better financial planning for the upcoming year.
Quick Start Guide:
- Block Out Time: If you handle your own bookkeeping, schedule an additional 30-60 minutes each week dedicated to updating and reviewing your financial records.
- Run Reports: If an accountant manages your books, use this time to run financial reports and evaluate your expenditures. Look for trends, assess budget alignment and plan adjustments.
- Organize Receipts and Invoices: Make sure all your financial documents are well-organized. Digital tools can help you scan and store receipts easily.
- Check Your Goals: Use this time to review your financial goals for the year. Are you on track? What adjustments need to be made for the next year?
Cami's Tips
- Create a Receipt Drawer: I've used this tip for a long time and have a dedicated drawer in my office just for receipts. I go through and scan them monthly, but sometimes I forget. This is a great time to catch up before the end of the year arrives.
- Set Reminders: Keep yourself accountable by setting weekly reminders to tackle your bookkeeping tasks.
- Consult with Your Accountant: If you work with an accountant, schedule a year-end meeting to discuss your financials and get professional insights that could help you save money and plan better for the future. They may be too busy to meet with you in the new year!
Routine Checkpoint:
Remember, this advanced approach will ease your tax preparation and give you a strong start to the new year.
What's Your Take?
How do you manage your year-end bookkeeping? Do you have any tips or tools that have worked well for you? Share your experiences and join our discussion on staying financially organized!
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about the author
Cami MacNamara is a web designer and owner of WebCami LLC, a Seattle-based agency since 2002. She created Web Designer Habits to help solopreneurs build smarter systems, stay productive, and run a business that works for them.