Year End Accounting Assistance
Outsource4Less helps you navigate the processes necessary to close your books and generate clean Accounting records and Financial Statements that in turn facilitate the filing of tax returns easier.
Getting your bookkeeping ready can be daunting. Outsource4Less has put together an easy to follow checklist that you can use to get your books ready for the year-end. We help you achieve these goals , saving you time and money.
Record All Transactions
This may seem obvious, but the first step is to make sure that all transactions up to the year-end date have been recorded. This includes current year bills and invoices even if they haven’t yet been paid.
Review your supporting documents (receipts, bills, invoices etc.) to make sure that you’ve recorded everything.
Do a Bank Reconciliation
It is also important to make sure that the transactions you’ve recorded in your bookkeeping software are the same as what is on your bank and credit card statements. To do this, you will need to perform bank reconciliations.
Review Your Financial Statements
Once we have completed your bookkeeping, it’s a good idea to look through your income statement and balance sheet and make sure things appear correct. Go through each line item and look for dollar amounts that don’t seem to make sense. We may quickly find a few mistakes that we can correct before closing your books. Things that we look for are like:
- Negative account balances
- Account balances that seem too high or too low
- Large differences in account balances from the previous year
Check Your Accounts Receivable and Invoices
It’s a good idea to review your receivables regularly to make sure you’re getting paid when you should be. Run an aged receivables report in your bookkeeping software at your year-end date. Look through the list of outstanding invoices and consider if you have been paid for each invoice or not.
The most likely place you will find errors or issues is the column showing the oldest invoices. Investigate any items that don’t look correct or if you think some invoices are missing. You’ll probably also want to contact customers who are late in paying while you’re at it!
Check Your Accounts Payable
On the other side of the coin, you will want to make sure that your accounts payable are correct at the end of the year. Run the aged payables report in your bookkeeping software and go through each item to see if they make sense.
Pay any late bills and make sure to record any missing bills dated on or before your year-end.
Making sure that all of the appropriate expenses are recorded will help reduce your tax bill.
Perform an Inventory Count
If you have an inventory of any kind in your business, it is important to make sure the value of inventory on hand is known at your year-end. This is done by physically counting your inventory on (or very close to) the final day of your fiscal year.
Count those widgets, bottles of vinegar, car batteries or whatever your inventory consists of. Write the number down and calculate the total inventory value by applying your cost per unit. Often this is easier said than done, so estimation may be required… how much is 6 half-full bottles of wine worth again?
Take Time to Reflect (Important)
The year-end is a great opportunity to reflect on your business on a higher level. Is it providing the income, time and enjoyment that you had hoped it would? Or is it stressful and all-consuming? What goals did you have for your business at the start of the year and did you achieve them? Looking at the bigger picture will help you make decisions to improve how your business operates, how you work in your business, and ultimately, your life as a business owner.
Yes we like tidy books at year-end, but what really gets us excited is helping business owners achieve success, whatever success means to them.