You’ve reached the end of your fiscal year!  The following process will help you with tax preparations:

 

  1. Reconcile all bank accounts through December 31st    

  2. Run the following reports:  For additional information about accounting reports take a look at this article.

    1. Accounting - Profit & Loss (Income Statement)

      • Review income accounts

      • Review expense accounts

      • Make note of Net Profit for End of Year entry on Balance Sheet

    2. Accounting - Balance Sheet

      • Review Asset accounts, with special focus on Advanced Client Costs

      • Review Liability accounts

        1. Loans (proper posting of payments)

        2. Are balances correct?

      • Create End of Year entry for Income and Expense Summary

        1. Using Net Profit from P&L create the following Journal Entry

          • Debit 3500 Income and Expense Summary

          • Credit 3400 Retained Earnings (check with your accountant, as some prefer 3200 Member’s Capital)

    3. Accounting - Trial Balance

    4. Accounting - A detailed General Ledger for the tax year- all transactions by COA

    5. Banking - Payee/Payor Ledger for each bank account.

      1. Check payee files to ensure you have Tax ID.

      2. With your accountant, determine who should be issued a 1099

  3. Have your accountant login directly to your CosmoLex account.  This access will allow him/her to make journal entries and handle other activities in real time.  You can provide your accountant access at no charge to you if he/she participates in our CosmoLex Accounting Partner (CAP) program.  To learn more about CAP, look at this article.