Everything Accountants Should Do Before the Year Ends

Posted on: December 5, 2019 by Huntersure LLC.

With the holidays settling in and another year coming to an end, accounting professionals should be looking to finish the year off on a good note by avoiding different risks and liabilities that can creep up. From taking care of spreadsheets to buttoning up invoices, accountants have a lot to take care of in order to end on a good note and avoid costly financial claims. And while the industry has seen fewer claims of accountant malpractice in recent years, there should still be a high level of attention given.

Here are some things that every accountant can add to their end-of-year list in order to have a successful transition from 2019 to 2020.

Review Accountant Liability Coverage

First and foremost, staying protected against claims and operating with the safety net of an accountant liability plan should be on every accountant’s to-do list. This kind of coverage is crucial to those in the accounting sector, and can help to provide the necessary funds when it comes to paying out fees and settlements.

Accountant liability insurance should be reviewed every year to look for any movement in rates based on changes in the office or in the insurance field. Accountants should go over their current level of coverage to see if they want to adjust their rate or level accordingly for the new year.

Stay On Top of Internal Operations

Now is the perfect time to take a beat and go over the internal controls that are already in motion. It’s important to look at maintenance of accurate financial records, fraud prevention, and early embezzlement detection and see if any of these contain gaps that make an office open to errors.

Payroll Compliance

Employees should receive their W-2 forms no later than January 31 of 2020. These should include any accrued bonuses or special gifts. This will help to reduce any stress that employees may have around tax season as well as prevent any major penalties laid down by the IRS who may suspect any avoidance in pay.

Generally Accepted Accounting Principles

It’s important to go over the books and make sure they are up to the level that investors and acquiring companies want. If a company’s finances are not in line with accounting principles, it’s important to make this a priority. If an accountant isn’t sure if they are working with GAAP-compliant books, they should work with the rest of the team to make sure everything is handled.

Factor Income Tax

The end of the year is the best time to identify tax needs and work to find a way to minimize payments and find potential savings. The end of the taxable year is coming closer and closer, and every moment counts when it comes to avoiding any major slip-ups or pile-ons.

About Huntersure

At Huntersure, we specialize in providing quality professional liability solutions to accounting professionals. Our Accountant Liability Insurance program provides coverage for accountants, auditors, bookkeepers, and tax preparers, so no matter where your clients lie in the industry they can have the coverage they need to protect themselves and their assets. To learn more about our operation and our Professional Liability Insurance solutions, contact us today at (855) 585-6255.

Posted in: Accounting blog