How To Move On From The Last Year And Have Financial Plan For The Upcoming Year
We have come to the close of the year, but one needs to do more things before it can dawn on them that we are in a new year. Apart from getting through the holidays writing down some resolutions, one also needs to ensure that they file their taxes. You might be feeling overwhelmed when you are at such a point, but this feeling is common. If you need guidance of the end of the year accounting, read on and get the checklist of tasks that will help you get closer to a new year.
The first step when you are making the end of year account is doing the review of the past year where you will compare the income and the expenses. You need to look back at the previous year to get an idea of what you accomplished as this will help you decide what you will aim at accomplishing in the New Year. You might have been impressed by your accomplishments in the last year or they might not have been impressive. Statistics according to the National Financial Capability study have revealed that in 2015, more than 18 percent of Americans spent more cash than they earned. To get over this, you need to forgive yourself and move forward and the next year is a new chance to take care of your finances. If you want to move through your end of year accounting efficiently and with ease, the essential step to help you is getting organized.
As part of preparing for the next year, you need to find some time to consolidate all the appropriate documents needed for tax and income proof. When you consolidate documents to use for filing taxes, the processing of filing taxes becomes easier. Some of the documents which you need to help file taxes include the W-2s, alimony received, proof of health insurance, mortgage documents, 1099s and other documents which make sure that IRS understand your income and your expenses.
You need to take care of your finances, and they will continue taking care of you, and one should take end of year accounting seriously. You might have gone through this checklist but you are yet to understand about how to handle your end of year accounting, and the best solution is to seek an individual who is trained and educated to handle the accounting process. If you seek accounting services such as those available at mcnewassociates.com, you will learn the difference between a decent accounting job and great accounting job.
To make the next year a great one, start it by having a planned and feasible monthly budget but at some point, you might shift from the budget due to lifestyle and avenues. If you have outstanding debt from shopping in the past year, work to eliminate the debt.