Top 10 EOY Accounting Questions for Success

Many business owners find themselves juggling multiple tasks at the end of the year as they try to close out their financials. Asking the right end-of-year (EOY) questions can reduce stress, help clean up their books, and even uncover tax savings. Here are ten questions that will help business owners finish out the year strong.

1. Are My Bank Accounts Current?

Reconciling bank accounts is crucial to avoid missing deductions and ensure accurate financial records.

2. Can I Collect My Open Receivables?

Uncollectible receivables can be written off, helping to clean up the books and avoid paying taxes on revenue you won’t receive.

3. Should I Make Any Year-End Purchases?

Consider making strategic year-end purchases to reduce taxable income, especially if your business is expecting a profitable year.

4. Do I Have Any Errors in My General Ledger (GL) Accounts?

Reviewing the general ledger can help spot errors that could lead to missed deductions or unrecorded transactions.

5. Did I Dispose of Any Assets?

It's important to review asset disposals or sales and consider the tax implications, including write-offs or income from sales.

6. Do I Have Any Old or Obsolete Inventory?

Writing off old or obsolete inventory can free up storage space and eliminate unnecessary insurance costs.

7. Have I Included All Unpaid Bills?

Failure to properly record unpaid bills in accounts payable before year-end may result in missed deductions.

8. Have I Included All Payroll Benefits for the Year?

Review payroll benefits like bonuses and retirement contributions to avoid complications with tax filings later.

9. Have I Recorded All Credit Card Purchases?

Capturing all credit card transactions ensures that all expenses are accounted for, avoiding missed deductions.

10. Am I Missing Any Debt?

Verify that any debt or financed purchases are properly recorded, including deductible interest payments.

Conducting a thorough year-end review can empower business owners to take proactive steps in preparing for tax season. By addressing these key questions, businesses can close out the year confidently. Consider reaching out to a professional accounting firm for further guidance.