Preparing for Year-End Close of Books
November 20, 2024
As we enter the fourth quarter, it’s time to start preparing for the year-end close of your books. For businesses, this is a crucial time to organize records and ensure everything is in place for an accurate and efficient tax filing process. One key area to focus on is updating your fixed asset records.
Here’s how you can get started:
1. Compile Your Fixed Asset Updates
Fixed assets include items like:
- Equipment
- Vehicles
- Buildings
- Real estate
To help us close your books and prepare your tax return, we’ll need:
- Purchase agreements for newly acquired assets.
- Details of trade-ins, including trade-in allowances.
- Financing documents for assets purchased with loans.
- Closing statements for real estate transactions.
Having this information ready ensures a smooth and accurate reconciliation of your books.
2. Review Your Depreciation Schedule
In the coming weeks, we’ll send out updated depreciation schedules to all our clients. These schedules detail the depreciation of your assets over time. It’s essential to review this document carefully and update it as needed. This ensures your records are accurate and your tax return reflects the correct deductions.
Why This Matters
Keeping your fixed asset records updated not only simplifies the year-end close but also helps:
- Maximize your allowable tax deductions.
- Avoid discrepancies during audits.
- Provide a clear picture of your business’s financial health.
As Benjamin Franklin famously said, “In this world, nothing is certain except death and taxes.” And at Romine Group CPAs, we do taxes.
If you have any questions about your fixed assets or need assistance preparing for year-end, don’t hesitate to reach out.
Thank you,
Ben Romine
CEO