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For entrepreneurs and employers, the end of the year is a busy period. If you’re like most business owners, you’re probably juggling year-end accounting procedures while also dealing with increased visitors and sales.
Rather than scrambling (or forgetting) to complete your year-end accounting operations, try outsourcing accounts department and employ a year-end closing checklist to structure the way you close the year.
You must complete various accounting duties before the clock strikes midnight on December 31. Your accounting books should be in order, up to date, and ready for the start of a new year. For this purpose, UK based outsourcer like FinConcile can help you. Check these seven tasks off your year-end accounting closing checklist before the end of the year. Remember that your year-end index may differ from another company’s, depending on your size and practises.
Your financial statements are your small business’s lifeline. They provide you with a snapshot of your company’s financial situation. Statements also allow you to see previous and current financials, allowing you to forecast your company’s financial future. Financial statements will eventually assist you to comprehend your company’s financial situation and (hopefully) make tax season less of a hassle for you.
Your cash flow statement shows the entering and exiting funds for your business. It’s important to remember that credit isn’t included in cash flow statements, only the actual cash you have included.
It is possible for your cash flow to be positive, which means that incoming money exceeds outgoing expenses. When you spend more money than you come in, you have a negative cash flow situation.
Using a cash flow statement, you can see when money is coming into and leaving your company.
If your company keeps inventory, you’ll want to make sure you have an accurate count. Complete an inventory check before the end of the year if your company maintains physical inventory. Comparing the balance sheet’s inventory totals will help you identify any discrepancies. Make corrections if you discover differences between your count and balance sheet.
Keep business receipts in a shoebox, please. If this is the case, you may want to reconsider how you store company receipts.
If your receipts are disorganised, you run the danger of having sloppy and inaccurate books in your small business. Aside from that, confusing records increase the likelihood of making mistakes on your small business tax return, which can lead to even more problems down the road.
Reconciling your bank accounts might assist you in verifying that all of your accounting records line up with your bank accounts.
Compare your bank statements with your accounting records to reconcile your accounts. The balance indicated in your documents should match the number on your bank statements. Investigate any discrepancies if they exist. To ensure that your proportions are equal, you may have to adjust one of your documents (e.g., interest amounts).
Our outsourcing services group helps UK accounting firms grow by boosting operational efficiency and managing scaling issues with the help of an experienced team. Our products allow them to grow swiftly while still generating healthy profit margins and productivity. Due to heavy workloads, our professional team takes over accounting firms’ financial and accounting activities and finds it difficult to shift their focus from administrative tasks.