The end of the year is fast approaching, so it’s time to start thinking about your year-end accounts. In any case, you must ensure your books are up-to-date and organized.
To help you get started, we’ve put together a year-end accounts checklist for small businesses. This checklist covers everything from bookkeeping to tax returns, and it’s a great way to ensure you’re prepared for the end of the year.
So, without further ado, here’s our year-end accounts checklist for small businesses:
Checklist for Small Businesses
Run a few standard financial reports
You should evaluate your finances and current financial situation at the end of the year to see how they compare to previous years. Using accounting software, you can generate your business’s income statements, balance sheets, and cash flow statements.
It’s always a good idea to speak with an accountant to understand your income statements, and an accountant will help you understand depreciation and other rules.
Accounts Receivable Reconciliation
In accounting, an account receivable is the amount owed by your customers when they purchase goods or services on credit from you. You can determine how efficiently your business collects revenue by calculating your accounts receivable turnover ratio.
When you reconcile accounts receivable, your cash flow will increase. You will not have to worry about outstanding invoices as you begin the new year.
Analyse Cash Flow Statements
A cash flow statement shows the record of money your business has to spend throughout the year. Cash inflows determine income.
Cash flow identifies and rectifies problems and indicates cash flow problems. When outflows exceed inflows, it indicates financial problems and various reasons for cash flow.
Now Look Ahead
Analyzing the Year-End report is daunting, but it is manageable if you follow a proper checklist. It becomes easier when you work with a trusted team of accountants and plan these tasks beforehand.