Follow these steps to ensure your books are prepared for tax filing:
1. Enter all your business transactions into Wave
Make sure every business transaction is entered in Wave. Users on the Pro Plan can connect bank and credit card accounts for automatic transaction imports. You can also upload a statement or enter transactions manually.
2. Categorize all your transactions
To find uncategorized transactions:
- On the left-side menu click Accounting > Transactions.
- At the top of the transactions list, click Filter.
- From the Category dropdown menu, click Uncategorized.
- Click Apply.
Review any uncategorized transactions and assign them to the correct category.
3. Prepare your final payroll
- Collect any outstanding expense reimbursements.
- Include year-end bonuses, annual benefits, and any other final adjustments.
- Ensure that the final check date falls within the same calendar year you are reporting for the amounts to be included in that year’s reports
4. Reconcile your bank and credit card accounts
Once all transactions are categorized, you can reconcile your books.
To reconcile, compare your transactions in Wave against the records from your financial institution. This ensures your books accurately reflect funds received and paid out.
5. Collect important paperwork
To file your taxes, gather the following reports and documents:
- Profit & Loss report for the fiscal year.
- Balance Sheet as of the last day of the year.
- Bank and credit card statements as of December 31.
- Receipts or bills for fixed assets purchased during the year (e.g., computers, vehicles, real estate).
- Loan statements as of December 31 and any available amortization schedules.
- Any tax documents you have received.
6. Collect past due invoices
Follow up on any past-due invoices to ensure accurate accounting. If an invoice won’t be paid, you can write off an invoice.
For help getting your books ready, contact Wave Advisors for coaching or bookkeeping services.