Year-End processes for QuickBooks Online – Part 3

Note:  This is a repeat post from 2018.  I am still taking a holiday break from posting my weekly blog. 

We have so many more cool tools for doing this year-end work now!  We have the insights page and we now we have bookkeeping review!  But while the process may be different (easier) with the new awesome tools in QuickBooks Online, the reasoning behind it remains the same.  If you don't have QuickBooks Online Accountant, the manual methods described in the next 3 posts will be useful as you close your books.  Enjoy!

Year-end processes for QuickBooks Part 3 is the final post on this topic.  This 3-part series is of the tasks I perform on client files, typically quarterly or monthly.  But it is very important to give the records a good look thru at year-end.  This last part is where you analyze the data.   If you would like to see Part 2, you can access it here.  

Comparing 2018 records with the 2019 records will not only help you to make sure the data is in the proper categories, but it will also help you know where you are at in your business.  It can help you see the accounts where you spend the most.  Compare your income year to year.  You don't have to stop at comparing just 2018 v 2019 if you have been in business a longer period of time.

Note:  Year-end processes for QuickBooks is a topic I thought would be a timely to explore.  I am repeating this series as these topics are so relevant for year end.  I am also going to post these in sequence so you can all have the three videos and you can begin the process of getting client files ready for tax season---Enjoy!

Year-End Processes for Quickbooks:  Review the Balance Sheet comparison report

Looking at this report with a lens of how you are doing.  Did you purchase any new assets?  Retire any old ones?  These are things you need to look at.  Additionally, you will want to add some receipts to the asset purchases along with any details of what was purchased in order to aid the CPA in calculating the depreciation at year-end.

Looking at credit card balances and comparing those from last year to this year. Are your balances higher at year end 2019?  It is a great way to see the "health" of a business.  If you have a lot of debt on the books, maybe it is time to start to think about or implement a plan to pay it down. 

Year-End Processes for Quickbooks:  Review the Profit and Loss comparison report

Looking at this report is where you can get into the nitty gritty of thinking ahead.

What is my sales goal for 2020?  Maybe create a budget with a goal. I like to think big here.   Remember, however, increasing sales without looking at where you can decrease expenditures is foolish.   When analyzing the data, you need to be thinking about where you can also reduce costs.  Run leaner.  This comparable report is great for just making sure things are in the right place first, and then looking more deeply as to where you would like to be at the end of 2020.

The video below will walk you through analyzing the data in much more detail.  

This was the last of the Year-End processes.   But it really is just the beginning.  I highly recommend reviewing, then analyzing the data, then creating a budget for 2020.  Really look for places you can cut costs.   Look for ways to get more quality customers.  Both of these two things will help your business flourish.  You may also want to see what your competitors are doing.  Reach out/collaborate.  It is something we preach and do in our Facebook group, QB Community Live!   Learning from others that are in similar businesses is the way to go.  

If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.  

Lynda Artesani

Lynda Artesani is the president of Artesani Bookkeeping where she uses her expertise and organizational skills to help her clients thrive and become profitable. Lynda is a member of the Intuit Trainer Writer Network. She is an alumni member of the Intuit Advisory Board. Additionally, she is the first Expert Columnist for the QB Community forum. She is also a co-founder in a Facebook group called QB Community Live!