January is the start of a new year, but there are still some tasks you need to complete to close out the previous calendar year.
Reconcile your accounts
At the end of the year, and when you prepare your taxes, you'll want to have the most up-to-date and correct information in your financial reports. Reconciling can help ensure that.
When you reconcile an account, you compare the beginning balance and transactions listed in your QuickBooks Online company file with your monthly bank or credit card statements to make sure they match. Reconciling is like balancing a chequebook, as you review your bank statement to make sure it matches the amounts you recorded in your cheque register.
The process helps to ensure that important financial reports, like your Balance Sheet, are accurate.
Reconciling can seem intimidating if you haven't done it before, or if you haven't done it for a while. You can get extra help in the QuickBooks Community and from your accountant, and you can review the following for more information:
Run Balance Sheet and Profit and Loss reports
The start of the new year is the natural time to run reports and evaluate how your business performed over the previous year.
Running reports is also an essential part of preparing for taxes.
The two most important reports that you and your accountant will need are the Balance Sheet and Profit and Loss reports, and it's a good idea to run these reports at the beginning of the year. Make sure the date range in the Transaction Date field for these reports covers the year you're reporting on.
For more information about your Balance Sheet and Profit and Loss reports, see the following:
Close the books
If you use QuickBooks Online Payments to process credit cards and online invoice payments, QuickBooks Online automatically records those bank deposits for you.
For more information about closing the books, see Close the books.
Review other monthly tasks
For an overview of year-end tasks, or for information about month-specific tasks, see the following: