2020 is drawing to a close, and for many of us, this year couldn’t end soon enough. The COVID-19 Pandemic caused a lot of upheaval in the Oil & Gas sector, a record-breaking hurricane season repeatedly bore down on the Gulf Coast, and a lot of political uncertainty still lurks on the near horizon. Come on, 2021 – bring us some good news!
If your fiscal year aligns with the calendar year, this is the perfect time to make sure you’ve set the stage for a more streamlined new year. Let’s go through our checklist:
First, make sure outstanding receivables and payables are squared away. In most cases, you don’t want to start a new year with debts or uncollected income. Carpe the diem, take care of it now – that clean slate feels great. n.b. your accountant may have good reasons for allowing some balances to roll over to the new year. Make sure you strategize with them, especially with larger amounts.
Eddye Dreyer Financial Services has decades of experience with Oil & Gas bookkeeping. Let us help you enjoy a successful 2021.
Next, gather any and all financial statements from the year. Bank and credit card statements, interest reports and earning statements provided to you, etc. While you’re at it, make sure you have all of your business receipts for 2020.
Also check that you have all necessary forms on file. Are your employee’s W-2’s current? Do you have a W-9 for each of your vendors?
Once you have all this together, reconcile all of your bank accounts in your accounting software. You’ll always find things you missed, but with statements and receipts on hand, this can go quickly, so don’t fret if you’re a little behind.
As you are in your books, go ahead and note any accruals and depreciations and make sure any inventory is current. The inherent tax benefits of doing this properly will more than pay for the time it takes.
The final step is too often skipped – close your books! It will be March before I’m remembering to write 2021 instead of 2020, and a single misdated check can throw your entire 2020 books askew and may take hours to find. Closing the year in your accounting software ensures you don’t slip up.
Whether you are needing consulting, regulatory filing, or full-service bookkeeping, Eddye Dreyer Financial Services can seamlessly integrate with your current back office, letting you play to your strengths while making sure the important work is being done.
Once that tedium is addressed, you can put your mind to the new year. What goals do you have for 2021? It’s always helpful to have a clear understanding of the past year when envisioning the next. What processes can you streamline? Is this the time to put some thought to your infrastructure?
Eddye Dreyer Financial Services knows the drill. If you are uncertain about any of these steps, or just know you need help, please reach out to us! We are bookkeepers AND consultants, and we can help you make the most of 2021. Call us today!