Finally, 2017 has come to a close – but you still have a lot to do before accepting the reality of 2018.
There are holidays to get through, resolutions to write, and then taxes to file. Odds are, you’re feeling a little overwhelmed. Don’t worry, though, because so is everyone else.
To help you get started on your end of year accounting, read further for a checklist of tasks that will bring you that much closer to the new year.
Review Your Year’s Income Vs. Expenses
Start by looking back at the previous year so that you can have an idea of exactly what you accomplished. This will also help you determine what you want to do in the upcoming year.
You might be proud of what you find, and you might not. In fact, according to this National Financial Capability Study, 18% of Americans spent more money than their income in the year 2015. That’s a scary statistic!
There are ways to fix this, though, and your best bet is to simply forgive yourself and move forward. There’s always next year to take more care with your finances.
Getting organized is essential for this step, and it will help you move through your end of year accounting with ease and efficiency.
Consolidate Tax & Income Documents
The next thing you should do is gather all of your tax and income proof from the previous year. This will help you significantly in 2018 when you have to actually file your taxes.
Documents that might be useful at this stage might be your W-2’s, 1099’s, alimony received, proof of health insurance, mortgage documents, and anything else that will give you and the IRS an accurate understanding of your income and expenses from this past year.
Consider Professional Services for Your End of Year Accounting
It’s important to take care of your finances now so that they can continue to take care of you. Take your end of year accounting seriously, and the year of 2018 should go by smoothly.
If you’re going through this checklist, and you still aren’t feeling up to the task, consider reaching out to someone who is educated and trained to take care of it all for you. A professional accounting service like the one found at mcnewassociates.com might be the difference between a decent job and a great job in sorting out your year’s finances.
Create a Budget for Next Year
Start off 2018 the right way with a planned and feasible monthly budget. This will most likely change throughout the year as your lifestyle needs and avenues of income shift.
A great practice, no matter what stage of life you’re in, is to get rid of as much of your existing debt as soon as possible. Maybe you racked up too much debt from shopping in 2017, or maybe you still have student loans to take care of. In either case, make a solid plan to pay off a significant amount over the course of the next year.
After going through this checklist, you should feel way more confident about your finances in the upcoming year. Search through our blog posts for even more tips and tricks to keep your life organized and fulfilled.