Year-End Bookkeeping and Accounting Checklist for Small Businesses

Chamber News

Ah, the dog days of summer. The time for beach trips, ice-cold lemonade, and… bookkeeping? Yes, folks, now is the perfect time to get a jumpstart on your year-end financials while everyone else is still thinking about sunscreen.

Business owners lose more sleep over taxes than the fear of being outperformed by competitors. No joke. According to a survey by the National Small Business Association, over 50% of small business owners say that dealing with federal taxes is the most significant administrative burden they face.

But as much as you’d love to ignore them, taxes are like that one relative who always shows up uninvited. To keep the taxman happy, you’ll need to give your books a good scrub, wrangle those wild invoices, and make peace with your accounts well before the year-end party starts.

Alright, let’s plunge into the wacky world of year-end bookkeeping. Do it wrong, and you’ll feel like a squirrel trying to swim—progress hindered, taxes in a mess. But do it right, and you’ll have a business tougher than a week-old bagel. So, with calculators in hand and a touch of humor, here’s a helpful guide to navigate through it with ease!

  1. Update Your Books

First up, the basics. Make sure all transactions for the entire fiscal year are recorded and organized. When your books are updated, annual bookkeeping becomes as breezy as a summer day, and you’ll dodge a barrage of questions from your accountant faster than the RoadRunner at a dodgeball tournament.

If you’re going the DIY route, start by reconciling your bank and credit card statements. Record all those invoices and bills—yes, even that suspiciously high takeout bill from “office supplies.” Don’t forget to review those less frequent expenses too—like that one-off legal fee or that fancy coffee machine you just had to have. (Hey, productivity fuel, right?)

  •  Reconcile Your Bank Account

Next, it’s time for some reconciliation. No, not with your ex, but with your bank accounts. Ensure your bank and credit card statements match your bookkeeping software records 100%. This step prevents mysterious transactions from sneaking into your financial records like a teenager creeping in past curfew.

Grab your bank statements and business records. Find the last time the balance of your book matched your bank account balance—think of it as a financial “Where’s Waldo?” moment. Match your income and expenses to bank deposits and withdrawals. Investigate any discrepancies like a bloodhound on a scent. (Jessica Fletcher would be proud!)

  • Review Financial Statements

Now, take a hard look at your financial statements: cash flow, balance sheets, and income statements. Weed out errors like you’re on a mission to clean out the attic filled with decades of junk. Here’s how to royally mess up your financial reports (and suffer the consequences):

  • Ignoring account receivables when customers don’t pay, like pretending that IOU from your sister’s brother’s cousin’s former roommate is real money.
  • Overlooking cash flow statements and suddenly realizing your funds are lower than a dachshund’s belly.
  • Failing to compare data between quarters, because who needs to know if your business is performing like a malfunctioning GPS, sending you on unexpected detours?

Address these issues while reviewing your financial statements. Look for anomalies, dig into transactions, and find the root causes like you’re a detective solving the mystery of the missing remote control. (Because sometimes, those hidden errors feel just like that!)

  • Review Accounts Receivable

Focus on the incoming cash flow: accounts receivable. You want a healthy cash flow, and your accounts receivable are as crucial as Wi-Fi at a tech convention. Given the rise in late payments, it’s more important than ever to tighten your review.

Check how much money you’re owed, the status of invoices, and ensure supporting documents are organized. Use accounting applications to make this easier. For example, QuickBooks Online helps you track invoices and follow up on outstanding ones directly from the dashboard, so you can chase down those late payments like a golden retriever chasing a tennis ball.

  • Review Accounts Payable

Just like with accounts receivable, it’s time to give your accounts payable some attention. Accurate expenses are essential for financial planning, so grab those outstanding payables and validate expense categorization against payment status. It’s like checking your pantry before a big grocery run—you don’t want to buy more peanut butter if you already have ten jars! (Is anyone else besides me guilty of this?!?)

Pull out your outstanding payables and ensure everything is categorized correctly. This not only keeps your financial planning on point but also helps reduce your tax bill—a significant incentive unless you enjoy contributing to the government’s office coffee fund more than necessary.

  • Plan Deductibles and Tax Strategies

With a clear picture of your expenses, it’s time to play the tax game and maximize those deductions. Take a good look at your expenses and figure out which deductions you can claim. Think of it like a scavenger hunt for golden tickets—home office deductions, software subscriptions, and maybe even that fancy standing desk you splurged on.

Remember, the IRS is like a nosy neighbor who wants to see all your receipts. Make sure they’re organized for audits and tax filings. Proper record-keeping throughout the year helps you accurately claim deductions and minimize tax liability. Plus, it keeps you from scrambling through shoeboxes of receipts like a game show contestant on a mad dash for the prize.

  • Reflect and Plan for Next Year

Now is the perfect time to take a step back and ponder your business’s performance. Are you hitting your financial goals, or are they as elusive as finding a needle in a haystack? Potential issues might be lurking in your financial statements, so take a good look.

Once you’ve dissected this year’s performance, it’s time to focus on next year’s goals. Want to change your business trajectory or readjust expectations? This is your moment. Don’t procrastinate until the last few weeks of the year to review and plan—unless you enjoy last-minute stress and potential late fines. Plan ahead, because rushing at the end is like trying to pack a family of five for a week long vacation the morning of your flight.

Starting your year-end bookkeeping prep now might not feel like winning the lottery, but it’s crucial for assessing your business’s financial health, tax planning, and future goal setting. And remember, if you bring in a skilled bookkeeper, you’ll find they can do a lot more than just year-end bookkeeping.

So, while getting your books in order might not have the excitement of a thrilling adventure, it’s essential for keeping your business on track. And if you’ve realized a bit late that your books are more tangled than holiday lights, don’t panic! Your trusty bookkeeper can swoop in like a superhero, sans cape, to save the day. Let the experts handle the number-crunching chaos, so you can focus on what you do best—growing your business and maybe even enjoying a stress-free cup of coffee. Cheers to a financially fit new year!

Visit i-balanced to learn more about their services.

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Penn’s Northeast and Calex ISCS Collaborate in Pioneering Marketing Effort

Chamber News, Community

With one vehicle traversing up and down the East coast and another journeying to California and back, two tractor-trailers will be painted with encouraging words advertising Northeast PA over the span of three years.

The idea was brought forth by Doug Barbacci, owner of Calex ISCS, who pondered the idea of a mobile billboard with his Chief Operating Officer Tom Grimes. At one of Penn’s Northeast marketing meetings, Calex ISCS then presented the concept to the company, and John Augustine, President/CEO of Penn’s Northeast, welcomed the initiative with open arms.

For three years, the trucks will be creatively advertising Northeast PA to businesses and individuals, specifically those contemplating relocation or expansion. The signage emphasizes the benefits of NEPA’s convenient location, detailing its proximity to one-third of the U.S. and one-half of Canada.

Penn’s Northeast (PNE) serves as Northeastern Pennsylvania’s regional economic development agency for site selection consultants, real estate brokers, developers, and businesses looking to expand or locate to our nine-county region that includes Carbon, Columbia, Lackawanna, Luzerne, Monroe, Pike, Schuylkill, Wayne, and Wyoming counties.

Read more about the marketing project: Penn’s Northeast partners with Calex ISCS on national marketing campaign – Times Leader

Article written by: Ashley Kenia, Wyoming County Chamber Summer Intern

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Forkston Girl Scouts Raising Funds for Fun!

Chamber News, Community

Sure, girl scouts sell mouth-watering cookies, wear cute vests, and go camping under starry summer nights. But did you also know they problem-solve, scouring their communities for issues they can tend to? This kind of selfless community service is exactly what the Forkston Girl Scout Troop is all about, and what they are currently up to in Tunkhannock, PA while working towards their Bronze Award.

            In order to obtain the Bronze Award, the Junior girl scouts, ages 9 to 11, must identify areas of improvement within the local community, work together on a project to solve one of the issues, and overall make a positive impact. Before they begin to work towards the award, the girls complete a Journey, earning badges by learning new skills that prepare them for the task of their Bronze Award project.

            After observing the Tunkhannock community for a couple of weeks and brainstorming areas of improvement, Forkston’s Junior Girl Scout Troop settled upon the issue of the Tunkhannock Area Intermediate Center’s playground for their Bronze Award project. The school, grades 3 to 6, has a jungle gym and a gaga pit donated by boy scouts, but no playground equipment like sport balls, jump ropes, or chalk. When the girl scouts noticed this dilemma in their observation of the community, they did a survey with their peers that inquired about their interests in sports and recess activities. Through the survey, they discovered that their classmates desired to throw around footballs, bounce a basketball, or jump rope at recess, among other activities needing equipment. Once receiving this information, the Forkston Girl Scouts knew exactly what they wanted to do for their Bronze Award project: raise funds for a shed at the playground that will house sporting equipment for recess.

            Girl scout Sadie Conrad, a Junior entering fifth grade, expresses her enthusiasm: “I’m really excited about this project because it’s going to be super fun to work on with my troop! I hope it helps make our school a better place by adding things we can all play with at recess. Plus, it’ll be awesome to see everyone happy with the changes!”

            Now, the girls are asking for our help as a community to make their project come to life. So far, the troop held two fundraisers in November 2023—a soup dinner and an overnight camp—to support their ambitious endeavor, but with the hope of completing the project in August/September, more funds are needed to achieve their desired result.

You can Venmo @forkstongirlscouts or call Davina Dunlap at 570-441-3007 to donate. The troop is also welcome to donations of wood for the shed’s platform, shelving, sporting goods, and totes to contain the sporting equipment. The Amazon wish list link below offers a variety of goods the troop is looking for; you can purchase right through the link and the items will be sent to Davina Dunlap.

Amazon.com

            This is a great opportunity to better our community and invest in the activities of our youth!

Article written by: Ashley Kenia, Wyoming County Chamber Summer Intern

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Are You Struggling to Organize Your Customer List in QuickBooks Online?

Chamber News, Member News

Are You Struggling to Organize Your Customer List in QuickBooks Online?

Managing customer information in QuickBooks Online can be challenging, especially if you have multiple locations or service lines. But don’t worry, QuickBooks Online offers powerful features like classes and locations to help you stay organized.

What Are Locations?

Locations in QuickBooks Online are used to track different offices, stores, or rental properties. This feature is particularly useful if you have customers with multiple sites. Remember, you can assign only one location per invoice.

What Are Classes?

Classes are designed to categorize different divisions, service lines, or products within your business. For instance, if you have a customer with both residential and commercial properties and you bill them on a single invoice, you can assign different classes to each line item.

Key Points:

  • Combined Limit: QuickBooks Online allows a combined total of 40 classes and locations.
  • Availability: These features are available only with QuickBooks Online Plus or Advanced memberships.
  • Activation:
    1. Click the gear icon in the upper right corner.
    2. Select ‘Company Settings’ under Settings.
    3. On the Company tab, scroll down to the Categories section.
    4. Click the pencil icon to edit, then turn classes and locations on.
    5. Click ‘Save’.

Once activated, you can create new classes or locations by going to the gear icon, selecting ‘All Lists’ under Lists, and then choosing either the Class or Location list.

If you have any further questions or need a demonstration, feel free to reach out to me at i-balanced.com. Additionally, if you have any specific QuickBooks Online questions or suggestions for other topics, please contact the chamber or email info@i-balanced.com. Your input can help us provide valuable information to our community.

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Susquehanna Kayak & Canoe Rentals Expanding with Third Location

Chamber News, Community

Susquehanna Kayak & Canoe Rentals to Open Third Location

Susquehanna Kayak & Canoe Rentals is expanding to Lackawanna State Park in North Abington Township. They will rent out paddleboards, single and tandem kayaks, pedal boats, canoes, and rowboats (with and without electric motors) for visitors to explore Lake Lackawanna.

Susquehanna Kayak & Canoe Rentals now operates three locations across Northeastern Pennsylvania. Their original shop in Falls opened in 2007, providing boat rentals along the Susquehanna River. In 2019, they opened the boat concession at Frances Slocum State Park in Wyoming, Luzerne County.

With the new location, Lackawanna State Park will be the only place in Lackawanna County to offer kayak rentals.

“For me personally, it’s exciting because we serve three counties: Wyoming, Luzerne, and Lackawanna,” said Art Coolbaugh, owner of Susquehanna Kayak & Canoe Rentals. “It’s also great for people from Clarks Summit and Scranton. They don’t have to drive far to rent a kayak and get out on the water. Lackawanna State Park will be right in their backyard.”

The Lackawanna State Park boat rental opens on May 24, just in time for Memorial Day weekend. Hours will be 11 a.m. to 7 p.m. on weekdays and 9 a.m. to 7 p.m. on weekends. They will remain open until Labor Day.

The rental stand will also sell supplies like bait and firewood. In the future, Coolbaugh hopes to offer bicycle rentals so visitors can discover the park’s popular mountain biking trails.

The Lackawanna State Park boat rental is located near the pool complex. For more information, call 570-540-1587 or visit kayaktheriver.com for details and online booking.


2024 Annual Chamber Paddle

Join us on July 25, 2024, for a serene journey down the Susquehanna River with the Wyoming County Chamber of Commerce. Trusted guide Art Coolbaugh and the Susquehanna Kayak team will lead our annual chamber paddle from The Vosburg Neck State Park to Tunkhannock’s Riverside Park, offering a scenic 4-mile route through the Endless Mountains. Meet us at the Tunkhannock Riverside Park Launch at 4:30 PM to begin our paddle adventure. Afterward, indulge in a sweet treat from the 1961 Ice Cream truck waiting for us at Riverside Park!

Register at https://www.kayaktheriver.com/trips/river-events/

2023 Chamber Kayak Paddle, with special guest paddler WNEP Chelsea Strub.

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Leadership Wyoming Tosses Bags For New Back To School Kicks For Kids!

Chamber News

Leadership Wyoming “tossed it in the hole”, raising over $7,000 at their cornhole tournament for Interfaith Friends’ Back to School shoe program. The day included 30 teams competing for prizes, plus members from the community rallied for BBQ from Control Tech and took their shot at basket raffles and prizes. A winning day for a worthy cause! Thank you to all the businesses and community members that sponsored and supported the 2024 Leadership Wyoming Project.

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Understanding Your Profit and Loss Statement: A Step-by-Step Guide

Chamber News, Uncategorized

Understanding Your Profit and Loss Statement: A Step-by-Step Guide

 

Welcome! This week’s feature will focus on empowering our local business owners with practical financial knowledge. Today, we’re diving into a crucial tool for any business owner: the Profit and Loss Statement (P&L). This financial document, also known as an income statement, provides a clear snapshot of your business’s financial performance over a specific period. Let’s break it down step-by-step to understand how to read it effectively.

 

Step 1: Recognize the Components

A typical P&L statement is divided into several key components:

  • Revenue: This section lists the total income generated from your business activities, including sales of products or services before any expenses are deducted.
  • Cost of Goods Sold (COGS): Direct costs attributable to the production of the goods sold in your company. This includes materials and labor costs directly tied to service delivery or product creation.
  • Gross Profit: Calculated by subtracting COGS from Revenue. This figure tells you how much money is left to cover all other expenses after covering the cost of sales.

 

Step 2: Analyze Operating Expenses

Operating expenses are the costs associated with running your business that are not directly linked to the creation of your product or service. These can include:

  • Salaries and wages: Payments to employees.
  • Rent: Cost of property used for business operations.
  • Utilities: Electricity, water, internet, and other necessary services.
  • Marketing and advertising: Costs to promote your business. Summing these expenses gives you the total operating expenses.

 

Step 3: Calculate Net Operating Income

Subtract the total operating expenses from the gross profit to determine your Net Operating Income (NOI). This number highlights the profitability of your business operations without considering other income sources, taxes, and additional expenses.

 

Step 4: Consider Other Income and Expenses

This section includes revenues and costs not directly tied to regular business operations, such as:

  • Interest income: Money earned from bank deposits.
  • Rental income: If you rent out part of your business space.
  • Interest expense: Cost of borrowed funds. Adding or subtracting these will adjust your NOI to show your earnings before taxes.

 

Step 5: Deduct Taxes to Find Net Income

Finally, subtract any taxes owed from the earnings before taxes to arrive at your Net Income. This is the bottom line that tells you the actual profitability of your business after all expenses and taxes.

 

Step 6: Review and Compare

Now that you have your net income, compare it with previous periods to identify trends, patterns, or areas needing attention. Are your operating expenses creeping up? Is your gross profit margin improving? These insights can help guide your business decisions.

 

Conclusion

Understanding your Profit and Loss Statement is essential for making informed financial decisions and steering your business towards greater profitability. Regular reviews will help you recognize financial trends, manage expenses, and highlight opportunities for growth.

 

I hope this guide has been helpful. If you have questions or need further assistance understanding your P&L statement, consider reaching out to a financial advisor, accountant, bookkeeper, or i-Balanced. Remember, staying informed is key to business success!

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5 Common Bookkeeping Mistakes

Chamber News

iBalbance provides tips on how to avoid

5 Common Bookkeeping Mistakes in small businesses

Hey there, fellow entrepreneurs!
We get it—juggling the financial side of your business can sometimes feel like
trying to ride a unicycle while juggling flaming torches. But fear not! Here
are five common bookkeeping blunders to watch out for, sprinkled with a dash of
humor:

  1. The Personal-Biz Financetastrophy:Picture this: Your business account and your personal account are doing the cha-cha together in a financial mash-up. Not ideal! Keep ’em separated like a strict parent chaperoning a middle school dance. Trust us, it’ll save you from a headache down the line.
  2. The Forgetful Freddie:
    Ever play hide and seek with your expenses? Yeah, your wallet doesn’t find
    it amusing. Keep track of every dollar and cent like a detective hunting
    down clues. Your financial statements will thank you, and you’ll avoid
    those “Where did all my money go?” moments.
  3. The Reconciliation Rumble:
    It’s like the Wild West out there—except instead of cowboys, it’s your
    bank statements and credit card bills having a showdown. Wrangle those
    numbers into submission with regular reconciliations. Yee-haw for
    financial accuracy!
  4. The Paperwork Party Pooper: Who needs paperwork when you’ve got… well, pretty
    much anything else? Turns out, the IRS isn’t a fan of that mindset. Keep
    those receipts and invoices like prized possessions. They’re your golden
    tickets to financial accountability!
  5. The Tax-Time Tangle:
    April 15th looming on the horizon like a storm cloud? Don’t let it rain on
    your parade! Stay ahead of the tax game by staying organized and informed.
    Trust us, the taxman is less scary when you’ve got your ducks (or
    receipts) in a row.


Avoiding these bookkeeping booboos might not make you the star of the next blockbuster, but hey, financial stability is pretty darn cool too. Keep those numbers in check, and your business will be soaring like a superhero in no time!

 

iBalanced is available to answer your bookkeeping questions and help you with business finance services. Contact Toni Zalewski for a consultation today. https://www.i-balanced.com/


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YOU Leadership

Chamber News, Member News, Uncategorized

The Wyoming County Chamber of Commerce proudly sponsors the Youth Opportunities Uncovered (YOU) program.

Twenty four students from Tunkhannock Area School District are participating in this inaugural year of YOU leadership training. These juniors and seniors were identified by Tunkhannock Area School District faculty to be emerging leaders in our County and will take part in this five-session yearlong program.

Susan Elias, school counselor at Tunkhannock Area High School, was inspired by her journey with Leadership Northeast last school year. As part of the Impact Program for Educators, Susan became interested in leadership. Susan noted that though our local students have always been included in applying for junior leadership opportunities through neighboring counties at Leadership Lackawanna and Leadership Northeast, transportation is always an obstacle. After meeting with Gina Suydam, the Chamber’s president, Gina revealed that creating and sustaining a teen leadership program was always a dream of the Chamber’s. Susan and Gina teamed up to write a teen leadership program proposal. Paul Dougherty, superintendent of Tunkhannock Area School District, encourages the partnership between the District and Chamber to benefit our county’s students as future leaders.

Thirty Chamber businesses are lending their financial support to the YOU program. In addition, the success of YOU is based on the cooperation between the Chamber and the Tunkhannock Area School District, as well as the eagerness of business leaders in the County to host sessions and to dedicate their time and talents to facilitate activities with the students.
Our first session was held on September 28th at Patriots Cove, a veteran’s refuge in Noxen, PA. The students learned about their leadership styles and communication preferences in an exercise conducted with Nicolette Morgan of Lackawanna College. Gina Suydam led a discussion on gratitude in leadership. Jeff Swire guided the students through The Cove and discussed his time in military leadership. Susan Elias told the students of her leadership journey, and finally, Jessica Cronauer, Executive Director of Leadership Northeast, presented an exercise in servant leadership.
The remaining four YOU leadership sessions are spread across the school year. They will culminate in April when the junior leaders and the Chamber’s core leadership team meet, connect, and set up a mentorship network. The Chamber is excited to empower our next generation of community leaders to make their IMPACT.

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Chamber Sponsorship 101

Advertising, Chamber News, Tips, Tricks and Advice

Let’s get this straight… An article in a chamber of commerce-published magazine about why it’s a good idea to sponsor chamber events?

Predictable, if not preachy?

Only, this is a guest article written by a small business owner whose entire marketing budget – 100% – is dedicated to chamber memberships and sponsorships.

So, let’s get to it…

Why Sponsor Chamber Events? 
To Support the Chamber, Of Course.
A lot of pre-pandemic chamber sponsorship spending was of the “good community citizen” variety – an understanding that chambers do an important service in the community, and that service needs to be financed. 
 
That purpose hasn’t changed at all, but the way businesses spend money sure has. 
 
Chambers everywhere have seen the frequency of big, sustaining checks fall, replaced with a need for more, albeit smaller, supporters. 
 
This is a trend that chambers are grappling with every day, and if sponsoring your chamber because you believe in its mission, and the team, is your reason for doing so, you deserve all the credit in the world.
 
Why Sponsor Chamber Events? 
Two Words: 
(Targeted  Marketing)
 
But, many businesses don’t think that way. So, why sponsor chamber events? Because nowhere on the planet will you find a better targeted marketing opportunity.
 
Yes, social media offers tremendous targeting tools, as do some other forms of advertising (if they happen to have the right audience for you).
 
But, week-in and week-out, chambers put the audience you need in a room for you, where you can talk to them directly, as opposed to simply sticking ads (they don’t want to see) in their faces.
 
On top of that, they have their bigger audience segmented for you… Events about marketing are going to draw people with that interest. Energy forums will capture that audience. Young professionals newsletters can put in front of your future hires.
 
Doing Sponsorship Right
But there’s a caveat… You have to do it right.
Sponsoring an event isn’t handing the chamber a check and just accepting their thank you from the podium. No, it’s an important part of your marketing strategy, and requires a process.
 
Which means:
1. When you scribble the check, let the chamber team know what you hope to get out of the investment;
 
2. As a sponsor, you are partly responsible for the event taking place, so put your team in the room and, while networking, call attention to your sponsorship by thanking people for attending;
 
3. Most chambers will give sponsors a list of attendees – get that list and use it… You have an easy hook for following up with people: they attended the event YOU sponsored!
 
Where else can you do laser-targeted marketing, AND help the organization fulfill its mission?
 
Here’s your opportunity.
 
Craig Turner spent eight years with the regional chamber of commerce in Western New York before starting his own business. Momentum – The Business Growth Agency consults with chambers of commerce, and their members, throughout North America.
 
– By Craig W. Turner, 
Momentum – The Business Growth Agency
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