With tax season (thankfully behind us), now is the time to consider your end-of-year practices to make filing easier next year.
Let’s ensure we’ve covered everything on the year-end accounting checklist for small company owners so we can go through this procedure quickly.
- Make sure your books are up-to-date and organized
The first thing you need to do is check that all your readers are up-to-date and nicely arranged. Ensure that the same information has been recorded for all payments, receipts, and invoices. Bookkeeping software like QuickBooks can be helpful with this task.
Related: What Is QuickBooks & What Does It Do?
- Reconcile your bank statements
Whether you keep track of your books online or on paper, it is important to check that they match up with your bank and credit card bills. This can be done by reconciling your bank statements.
- Review your financial statements
Look through your revenue and balance sheets carefully to ensure everything is in the right place. If something needs to be corrected, look into it more. Check for any unanticipated negative balances or significant deviations from the average of the prior quarters.
- Accounts receivable
Review your statements to confirm that any outstanding bills have been paid. Examine any invoices still arriving or needing to be put into your system, and follow up with outstanding debtors.
- Accounts payable
Make sure you check your accounts payable regularly to be aware of any invoices coming due and avoid incurring any late payment fees. You could also pay your bills early to account for the money saved in this year’s taxes.
- Inventory
If your company maintains inventory, you should do an inventory count before the end of the year to be aware of what you have and how much it is worth.
- Review your deductions and changes to your business
Examine your deductions and any modifications you’ve made to your company: Check with your bookkeeper or accountant to find out what deductions are possible, and acquire any paperwork that may be required. Find any documents that pertain to large purchases or new pieces of equipment made this year. Notify your accountant or bookkeeper of any transactions involving the sale of any equipment or other assets.
- Plan your taxes
When it comes to short-term and long-term planning, quarterly reviews of your financial accounts are essential. Reviewing your financial documents and conversing with your bookkeeper or accountant might help you avoid unpleasant surprises when filing your taxes.
Related: How to Lower Your Taxable Income and Pay Less in Taxes
- Reflect on the year
Take some time to reflect on the year. Evaluate whether or not you were successful in meeting your objectives and consider whether or not they should be altered for the following year.
- Set your goals for next year
Make a list of your resolutions for the next year: Start a game plan for the future year by deciding what you want to accomplish with your company. Think about the possibility of changing your business’s focus, expanding, buying new equipment, or arranging your taxes.
Related: Why Should You Use K9 Bookkeeping?
Now is an opportunity to start preparing for any future changes, whether that be a change in the company’s mission or direction, an expansion, the purchase of new equipment, or changes to how taxes are managed. If you are in need of assistance from a professional, K9 Bookkeeping is here to help!
We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on bookkeeping, to ensure your business is financially sound and ready to grow to the next level.
Running a business is hard work, bookkeeping shouldn’t be.
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