The financial end of the year can be a hectic time especially if your year-end books aren’t in order. It’s important that your financial information is accurate and complete. Your financial statements from the end of the year are more important than any other document within your business, and will be referenced for tax preparation. Year-end books are also used to track the growth of your business. Take a look at my tips for getting your year-end books in order.
A bank reconciliation matches the balances in your books with information from your bank statements. In other words what your business has spent and what it’s gained. Ideally these should be prepared every month to make sure that your record of how much cash your company has is accurate. When the year comes to a close, gather all of your bank statements and invoices together from that year for review, and perform a year-end audit.
The year’s end is also the time to take tax allowances into consideration. Look into purchases you can make to improve your business.
As soon as the current financial year is over for your business, it’s time to focus on the next year. If there are any areas within your accounts that gave you a hard time while you were getting things in order, work out a system that can eliminate the hassle for next year.
Keep these things in mind while you work out your books for your year-end accounts. They will help to ensure your business sees a smooth transition. Not only that, your financial reports for the current year may help you to secure your company’s growth in the future.