Designers Year End Check List What You Need to Submit to Your Accountant by November

Designers’ Year End Check List: What You Need to Submit to Accountants to Close 2018


Attention all designers! Want to know the secret to prepping for tax season? GET STARTED IN NOVEMBER!  Kimberly Merlitti, owner of KMM Consulting, shares her end of year check list for designers, grounded in 20 years of experience working in accounting.


1. Look at your Profit & Loss report. Where do you stand? Do you have a larger than expected profit? Are there any major purchases you should make now that can be depreciated?

2. Ask your CPA or Tax accountant to review your statements. You want to know if you are on track for tax payments. Do you owe by April 15, 2019 for your taxes?

3. If on a cash basis and you receive a large deposit in the month of December, then you will have to pay tax on that amount. UNLESS you spend that money on vendor costs or overhead costs before January 1, 2019.

Make sure you have cash to pay your year-end payrolls and bonuses, sales tax, tax deposits or consultants.

4. Make sure you have W9s for all consultants that are NOT S corps. You will need this information entered into your software before January 1, 2019 to complete your 1099s.

1099s are due to all W9 consultants by January 31st, 2019.

5. W2s are due to your employees by January 31st, 2019. You should make sure you have the correct addresses and social security numbers for all employees.

If you are a design business that issues W-2s, benefits relate to the organization as a whole and can reflect things such as health and life insurance, transportation subsidies, educational reimbursement programs and more. Make sure if this applies to your firm these amounts are being reflected in the W2.

6. If you have inventory, this is the best time to do a count and update your balance sheet.

7. Create your 2019 budget. It is important to start working on this budget before January 1, 2019 if you need help entering it into your software system.

8. Verify loan accounts and clean them up if necessary.

AFTER JANUARY 1st, 2019:

1. Reconcile all accounts – bank and credit cards – in your accounting system. Make sure you are reconciling ALL savings, checking and credit card accounts.

2. Verify you’ve made all entries in Petty Cash.

3. Verify you’ve made all business expense entries into your software for items you’ve paid for with personal funds.

4. Once you have closed 2018, then, you will need Adjusting Journal Entries from your Tax accountant or CPA. If you need help entering, contact your CPA! Or, you can have your in house bookkeeper or accountant enter these. This will match your internal books with your Tax Return.

5. Make any adjusting entries for accruals of payroll tax liabilities or pre-paid expenses (get help from your accountant).

6. Print and mail payroll forms if you do it yourself (W-2, W-3, 940, 941).

7. Print and mail 1099’s to independent contractors (by January 31, 2019).

8. Print and mail 1096 to IRS (by February 28, 2019).

9. Corporate taxes are due by March 15, 2019 for tax year 2018. To allow your CPA/Tax accountant enough time to complete them, you will need to have all your documents to them a good 30 days before this deadline.

10. Individual taxes are due by April 15, 2019 for tax year 2018. To allow your CPA/Tax accountant enough time to complete them, you will need to have all your documents to them a good 30 days before this deadline.

Written by Kimberly Merlitti of KMM Consulting

Kimberly Merlitti owns KMM Consulting based out of San Francisco, CA. Kimberly has 20 years of experience working in accounting for companies such as Swinerton Builders, WRNS Studio and Martin Group. She has her Masters in Accounting from Golden Gate University located in San Francisco, CA. KMM Consulting’s clientele include a diverse group of service based companies, with a main focus on small interior design, construction and architectural firms. The goal of her firm is to make the businesses she works for as profitable as they can be by educating them on accounting, cash flow management, tax deductions, project reporting, and business management.

Ivy is the # 1 software for designers. To learn more about Ivy, schedule a demo with an Ivy Guru who can show you how designers use Ivy to streamline their workflow and make more time for what they love, design.