January is the month to clean up last year’s books and start the new year with accurate financials. When your books are in order early, tax season becomes easier and you get better information for decision-making. TKG Tax & Accounting supports business owners near our accounting practice in Cranford, NJ with bookkeeping and accounting guidance that keeps the numbers reliable.
January tasks to prioritize
Reconcile bank and credit card accounts
Reconcile every account through December 31. This helps you catch missing transactions, duplicates, and miscategorized expenses.
Review your chart of accounts
A clean chart of accounts improves reporting and reduces tax prep time. Combine duplicate categories and make sure expenses are grouped consistently.
Check your financial reports
Run a year-end Profit and Loss and Balance Sheet. Then review them for items that look unusual, such as large miscellaneous expenses, negative balances, or inconsistent owner transactions.
Clean up accounts receivable and payable
- Follow up on overdue invoices and correct any misapplied payments.
- Confirm vendor bills are accurate and recorded in the right period.
Confirm payroll matches the books
Compare payroll reports to your payroll expense and liability accounts. Clear out old balances and confirm taxes and benefits are recorded correctly.
Prepare for 1099 reporting
If you paid contractors, confirm W-9s are on file and vendor details are correct. Review totals by contractor and separate out payments that were made by card or third-party processor when needed.
Inventory review, if applicable
If you sell products, confirm your year-end inventory count and reconcile inventory values in your system. Review cost of goods sold for accuracy.
A simple next step
Once these items are complete, schedule a tax planning conversation. Clean books allow your CPA to focus on strategy instead of cleanup.
If you want dependable bookkeeping support near our accounting practice in Cranford, NJ, TKG Tax & Accounting can help you start the year strong.
