With the end of the year rapidly approaching, many small business owners are starting to wonder what they can do to help prepare for tax season and year-end reporting. Especially for business owners who lack bookkeeping and financial expertise, it can be difficult to get that end-of-year preparation done properly. Here are a few things that you should consider to help you get ready for your final reporting and tax filing this year.

Update Your Accounts

Especially if you're trying to do the business bookkeeping on your own, it can be hard to keep up with it. If you're behind on your accounting, you need to take some time to update the accounts. Make sure that all of your payables, receivables, and other records are all up to date. Review your asset accounts, and ensure that all of your assets are recorded and accurately depreciated. Make any changes needed to ensure the accuracy of your ledger.

Reconcile Your Ledger

Once you're certain that all of your accounts are up-to-date, it's time to reconcile them. Make sure you go through your ledger and reconcile it to your bank statements. Review any unreconciled transactions for accuracy, and adjust your books accordingly.

After all of your accounts are reconciled, you can easily spot errors in your debits and credits by running a trial balance. Your debits should equal your credits in every account. If the balances don't match, you'll need to review that account for posting errors.

Address Your Aging Accounts

Before the end of the year, take the time to go through your aging accounts receivable. Send follow-up collection letters to each of your customers, and have someone make calls to try to encourage payment. The more of your accounts you can close out before the end of the year, the better.

While you're reviewing these accounts, you should also take time to determine if any of those accounts should be written off as bad debt. Consider the age of the account as well as the likelihood of receiving payment from the customer. Write off any eligible accounts before you close out for the year.

Finalize Your Reports

At the end of the year, with the confidence that your accounts are current and accurate, you need to run your year-end reporting. This reporting is important for tax preparation. Reach out to a bookkeeping professional for help, or contact a CPA for your tax filings and more guidance.