With the end of the calendar year right around the corner and tax season quickly approaching, every business is going over their books. In an attempt to offer expert advice to the public and publicize tips on how to start on your books before you go into your accountant, Universal Accounting has the following checklist to help businesses:
* Does my general ledger bank balance reconcile to the bank statement?
* Are there any accounts receivables that are worthless and should be written off?
* Is my balance in Allowance for Bad Debts a reasonable estimate of potential writeoffs?
* Is the company’s inventory balance correctly stated?
* Are there inventory items that cost more than their worth and should be written down to their market value?
* Does the company still have all the fixed assets?
* Is my depreciation correctly recorded for those fixed assets still in the company’s possession?
* Did I amortize goodwill and franchise fees?
* Are there any prepaid items that need to be adjusted such as prepaid insurance?
* Have all assets been reviewed for accuracy?
* Have we recorded all of our payables?
* Do the payroll tax liabilities coincide with our quarterly reports?
* Do the balances in the notes payable accounts (loans) agree with what the banks say we owe?
* Are there other debts that have not been included on the books?
* Are there debts on the books that no longer exist because of forgiveness or oversight?
Not all of these will apply to every business or organization, and an accountant should help any small business with questions about their bookkeeping for 2008.