As the year comes to a close, it's crucial for roofing businesses to properly wrap up their financials. Here's a step-by-step guide to ensure a smooth year-end close and prepare your company for the year ahead:

1. Reconcile Accounts:

Ensure all bank and credit card statements are reconciled. This includes checking for discrepancies between your accounting records and actual balances. Using accounting software or a Professional Bookkeeper can make this task much easier.

2. Review Outstanding Invoices:

Follow up on unpaid invoices. Collecting on any outstanding payments will improve your year-end cash flow. Want additional tips for watching your cash-flow? See my blog "5 Tips for Maintaining a Positive Cash Flow".

3. Assess Job Costs:

Review costs for all roofing projects completed throughout the year. Ensure that labor, materials, and overhead were accurately tracked to understand your profitability.

See my blog on "Tracking Job Profitability for Roofing Companies" for more information.

4. Organize Receipts and Expenses:

Categorize all expenses, from material purchases to office supplies, ensuring nothing is missed when calculating deductions. Use industry-specific software to help you track or work with a Professional Bookkeeper to help you decide how to categorize.

5. Prepare for Taxes:

Work with a tax professional to take advantage of any tax deductions or credits. Filing your taxes accurately can help avoid penalties and ensure compliance. See my blog on "Tax Deductions You May Have Overlooked in Your Business".

6. Review Financial Reports:

Analyze key financial statements like profit and loss, cash flow, and balance sheets. This will give you a clear view of your business’s financial health and areas for improvement. For more information on understanding your financial statements, see my blog "Essential Financial Reports for Your Business".

7. Prepare and file end of year informational returns:

Now that your books are complete, be sure to send any 1099s to eligible vendors and don't forget about your W2 tax filings if you have employees! These will also be helpful when that yearly insurance audit creeps in.

By following these steps, you'll not only close out the year efficiently but also set the foundation for growth in the next year.

We can help with all of these tasks. Schedule a free, no obligation chat with us at www.wisebookkeeper.com