A couple blog posts ago, I discussed the things that you could do to start preparing for year end. Things like gathering all relevant financial documentation, recording income and expenses, organizing your tax documents, and communicating with your tax preparer. Did you think you had more time? Is the realization hitting that it’s December now and while everyone is celebrating for the holidays, there’s actually an extremely long list of things that you feel like you have to get done?
You are not alone
Take solace in the fact that you are definitely not alone in this feeling right now. Between our personal lives and work lives putting an immense amount of pressure on us, sometimes it feels like the best we can do is just get up and put one foot in front of the other. But it will get better if you take a moment to do something every day that you can cross off your to-do list, whether that’s some self care or an admin task that you’ve been putting off for a while.
I know what you’re probably thinking right now, “Isn’t this supposed to be an accounting blog?” And yes, it absolutely is, and this is an accountant speaking right now, but we need to accept that this time of year is difficult for everyone. It’s the steps we take not only now, but throughout the year that can help us not be so stressed once this point in the year arrives.
Why so any requests?
If you’re feeling bombarded with requests and demands, start making a list based on priority of things you need to do, with the most time sensitive things first. When you sort by deadline, it makes it easier to not get behind and bogged down in the minute details. There is always an appropriate order of events, and things that need to get done in a certain order, so often spending about 30 minutes writing them all down can get them out of your head and onto an action list.
One of the things that is higher on the priority list right now is making sure you are able to issue any 1099s to vendors that need it. These vendors include the “obvious” like therapist or administrative contractors. But most practice owners don’t realize 1099s ALSO might need to be sent to your cleaning person, lawyer, or a myriad of vendors paid more than $600 in the year for services. It’s not always clear cut, so don’t be afraid to ask your accountant for advice or help with 1099s.
I’m fully aware that as an accountant, we tend to have more urgent than usual requests for our clients at this time of the year because we’re under a significant amount of pressure from IRS and payroll deadlines. One of our jobs is to make sure that your financial information is delivered to you in a timely manner, but also to help you meet your filing requirements accurately and on time.
A few helpful things to keep in mind during this time of the year is that there are a lot of moving parts in the background if you have an accountant - details we are making sure are correct throughout the year so all documentation is filed correctly. Everything ranging from year end reviews, payroll reviews, and making sure the books are in compliance with accounting standards and IRS regulations.
If you don’t have an accountant and are worried about the things in your practice that you feel like are out of control, we have several courses that are designed to help you navigate the financial pain points in your practice! Find more information here.
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This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. GreenOak Accounting is an accounting firm that specializes in working with counselors and therapists in private practice. We provide monthly accounting & bookkeeping services, 1-time services and online courses. For more information on our specialized services for therapists please visit www.greenoakaccounting.com