Well the holiday season is upon us and so too is the end of calendar year 2020! 2020 was certainly a year that presented businesses with many challenges, yet with that came the opportunity to think creatively and to explore new and different ways of adapting with the hope of sustaining revenue inflows, protecting valuable employees, and perhaps even expanding. But it is now time to wrap it up and Breakwater can help you do that and do it well.
During the pandemic, your organization may have secured funding from various federal, state, and private agencies in the form of loans and/or grants to support your mission and to enhance cash flow during critical periods. Be sure to talk with your breakwater team and tax accountant to ensure you have recorded all loans, grants, and related expenses properly. Make sure you understand the tax consequences of these inflows and documentation requirements that may be required for this year’s returns and of course, for the PPP Forgiveness Application with your lender.
Consistent with prior years, there are still year end filing requirements that need to be taken care of such as W2s, 1099s, Annual Franchise Tax Returns, Business License Renewals, etc. A reminder that when you receive notices from external agencies, send them along to your breakwater team who is skilled in these areas and is here to assist you in meeting these critical deadlines.
We also recommend that prior to December 31, 2020, you partner with Breakwater to perform a review of your organization’s balance sheet to ensure accounts are reconciled, substantiated and accurate. For example, are all cash accounts reconciled with the bank, customer receivable balances collectible, or perhaps there are old credit card accounts that should be closed and removed? What about the $100 in petty cash, is that on hand? What better way to prepare for a year-end audit and a clean start to 2021!
Rest assured that wrapping up 2020 with your Breakwater elves to generate and analyze financial statements for your Finance Committee and/or Board of Directors, to support a year end audit and to ensure all of your filing deadlines are met, will give you the peace you need during this very unusual holiday season. This is our gift to you!
For more information on how to prepare for year end please join Breakwater’s Heather Delaney along with our partner Airbase at their seminar on December 9th, 2020 at 1pm.
Cheers to a prepared 2021!