Every year, there’s a few things to take care of before (and after!) the new year. These are items that all restaurants have to do every year, regardless of their formation type. This handy little checklist will help you stay on track, so your CPA won’t judge you (somehow it's like disappointing Granny for not becoming a banker).
The Year-End Checklist
December 20th: Last day to run a Holiday Bonus
December 29th: Last day to run a 2021 payroll with Gusto
December 31st: Inventory! Your CPA will want to see an updated count on your inventory. A lot of restaurants don’t count on a monthly or weekly basis, but this is the one time of year you actually NEED to do a count. It doesn’t have to be scientific, but it should be within a couple of hundred bucks of what you think the true value is.
Double check your tip liability. Make sure that your tips clear out of the liability account. If you haven’t done this all year, be prepared for a long day. Sorry!
Check wage rates to make sure any employers that are close to the minimum wage are going to get the new minimum wage effective January 1st if your state is increasing the minimum wage.
January 1st: Grab all your bank, loan and credit card statements. Your CPA will need the last month of all of them, but while you're in there you may as well grab them all, in case somewhere down the road you change banks.
January 14th: Download Bulk W-2’s and all your quarterly filings and FICA Tip Credit Report from Gusto!
January 20th: 1099 deadline (it’s really the 31st). You really need the 1099’s out the door with a week to spare, because inevitably, someone comes back to you saying they gave you incorrect information. If you use QuickBooks, there is a built-in workflow that will allow you to send out your 1099’s
January-ish: Update your State Unemployment Insurance (SUI) Rate in your payroll system. This rate comes out sometime in January (it’s different for each state), but once you get the notice, you’ll need to send the notice to your payroll processor to update the rate. Not updating this rate can be a pricey mistake!
If you have a unique tax setup, like an S-Corp, there are some extra steps to consider as well. If getting your tax information to your CPA is always a nightmare, consider reaching out to Prix Fixe Accounting, and have us take that weight off your shoulders.