The end of the year is fast approaching (we probably didn’t have to remind you!).  A few things to keep in mind so that you can turn over an organized file to your accountant in January:

1.      Make all of your charitable contributions before the end of the year in order to get the benefit of a tax deduction for 2009.  Itemize gifts of goods, while the information is still fresh in your mind.  Remember to also account for the professional time that you donated to that auction.

2.      Make the most of your retirement contributions.  Some contributions can be made until April 14 of 2010 for 2009.  So, now is the perfect time to plan that contribution and make the contributions over the next four months.

3.      Most of us like to defer our income, and increase our expenses in order to decrease our current year tax liability; however, you may need to rethink this strategy as tax rates are on the rise.  Tax cuts created during the Bush administration are set to expire in 2011, which may make it advantageous for you to recognize income now rather than later.  Ask your tax professional.

4.  Ensure that you are up to date on your bank reconciliations so that you have a true balance sheet and income statement on December 31st.

5.  If you do your own payroll, check with your accountant and/or the IRS to ensure that you are aware of the proper year-end forms to file.

6.  In many financial accounting software programs you can only have two fiscal years open at any one time.  That means that in 2010, you must have 2008 closed.  This is especially true if you use Studio Designer.  If 2008 is not closed, be sure to do this before December 31st or you will run into a big mess.

If you are feeling any pinch and worry about what to gather for the end-of-the-year financials, be sure to use your bookkeeper or accountant as a resource.  Feel free to contact our Accounting Services group and we will make sure to either help you or steer you in the right direction.