New for 2020 Year-end

  • There is a new Form 1099 MISC with several changes. If you only have 1099 activity in 2020 for “non-employee compensation,” then you will need to use the new Form 1099 NEC. If you have more that one type of reportable 1099 transactions, then you will also need the new Form 1099 MISC
  • If you made any sick leave payments to employees because they had COVID, then those hours need to be reported on Form W-2 2020 in box 14. See this link for more information.

Federal Reports

  • While the IRS has not mandated all tax reports be filed electronically, they are encouraging businesses to do so. See latest notice here.
  • Make sure you have blank forms for all IRS needed filings. NELCO has what you need.  Click Here to order forms
  • The deadline for filings is January 31, 2021, for most reports
  • Consider using e-File to streamline your reporting needs

General Ledger

  • Check all sub-ledgers for unposted 2020 transactions
  • Check Journal Entry to make sure all journals have been posted to the ledger
  • Check your year-end Statement of Financial Position for year-end updates
    • Reclassifying any capital expenses
    • Verify and update Payroll activity
    • Check and take needed action on donations with restrictions
  • Enter any year-end accruals needed
  • Modify chart of accounts for the new year if needed
  • Set a time to change the default year to 2021
  • Run Year-end Closing procedure

Accounts Payable

  • (Accrual based)  Make sure all invoices to be accrued in the old year are posted 
  • (Cash-based)  Make sure all expense checks that should be recorded in 2020 are printed and posted.
  • Verify that all 1099 vendors’ invoices have been coded correctly. NOTE: non-employee information should now be reported on the new Form 1099 NEC 2020. See more information here.

Accounts Receivable

  • Review all unpaid invoices and write-off all that probably will never be paid
  • Verify that all Unapplied payments have been handled properly
  • If you have a Day Care then print statements for parents to use in filing their income tax report
  • Verify all 2020 invoices and payments have been posted

Payroll

  • New Year tax table updates are handled for you. No action necessary
  • May need to update individuals time-off hours
  • Use Manual Check feature to:
    • Add non-cash compensation for taxable benefits, such as insurance
    • Add Employer Paid Health Care Value for each employee
    • (NEW) Make adjustments for COVID related time-off hours so they are reported on Form W-2 2020 in box 14. See instructions for setting up FFCRA activity here.
  • Run test reports for Form W-2 2020 and ACA reports. Correct any omissions/errors observed

Purchasing Management

  • Review and clean up outstanding Purchase orders that are old and no longer viable
  • Review partially fulfilled Purchase Orders and clean up as needed

Fixed Assets

  • Inventory all items and adjust for retired, sold, or missing items. Make adjustments as needed.
  • Run depreciation for month, or for year if appropriate

Year-End Closing

  • Run the Year-End Closing procedure if you are on a calendar year.  Remember, you can run the year-end closing procedure as many times as needed.

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