QuickBooks Clean-Up: Get Ready for Tax Season

As the end of the year approaches, tax season is right around the corner. If your QuickBooks account isn’t as tidy as it should be, now is a good time to take action! A clean and organized QuickBooks file makes tax prep easier and ensures you’re maximizing your deductions and staying compliant with tax laws.

Here’s how to tackle a QuickBooks clean-up before tax season hits.

1. Reconcile All Accounts

Start by reconciling your bank and credit card accounts to ensure your QuickBooks matches your bank statements. Unreconciled accounts can lead to inaccuracies in your financial reports, which could create issues when filing taxes.

Quick Tip:

If you find discrepancies, go through each transaction to identify duplicates, missing entries, or incorrect amounts.

2. Categorize Transactions Correctly

Properly categorizing income and expenses is key for tax reporting and identifying potential deductions. Review your uncategorized transactions and assign them to the right accounts.

Common Mistakes to Watch For:

• Personal expenses mixed with business accounts.
• Recurring payments that need to be split (e.g., part business, part personal).

3. Review Accounts Receivable and Payable

Unpaid invoices or outstanding bills could affect your cash flow and financial statements. Go through your accounts receivable and payable to ensure all entries are accurate and up to date.

4. Fix Errors in the Chart of Accounts

Your chart of accounts is the backbone of your financial reporting. Look for errors like duplicate accounts or incorrectly categorized accounts. A streamlined chart of accounts makes it easier to pull accurate reports for tax preparation.

5. Check for Old Transactions

Do you have old transactions that haven’t been matched or cleared? Review these and take appropriate action—whether it’s matching them to deposits or removing duplicates.

6. Generate and Review Financial Reports

Before handing your books over to your tax professional, generate key reports like your Profit & Loss Statement and Balance Sheet. This helps identify any glaring errors or areas that need further cleanup.

7. Seek Professional Help if Needed

If your QuickBooks file feels overwhelming, don’t worry—help is just a call away! At Cooper Bookkeeping, I specialize in QuickBooks clean-up services to help you get your books in top shape before tax season.

Why Clean-Up Matters

• Maximize Deductions: A clean QuickBooks file ensures you don’t miss out on eligible tax deductions.
• Avoid Penalties: Inaccurate financials can lead to costly tax errors.
• Save Time: Clean books make filing taxes faster and stress-free.

Let’s Get Started

Don’t wait until the last minute to clean up your QuickBooks. Contact me, April Pavlus, at april@cooperbookkeeping.com or call 315.366.1946 to schedule your QuickBooks clean-up session today.

Let’s make this tax season your easiest one yet!