Small Business Year End Checklist

Small Business Year End Checklist and Guide

How to Close the Fiscal Year: Complete Guide & Checklist

Another year has flown by, and you may find yourself scrambling to get all of your business’ important info to your accountant or bookkeeper. No matter how many times your company has gone through this process it can still seem daunting and stressful, but with this comprehensive small business year end guide and checklist, you can ensure all of your important financial information gets to where it needs to go. This way you can focus your energy on being awesome in the new year.

The Importance of Finishing Your Fiscal Year on a High Note

Before diving into the next fiscal year, you first need to finish the last one on a strong note and tie up all loose ends. This means going over all crucial documentation to see what worked and what didn’t over the past year, as well as getting all the documentation to your accountant or bookkeeping team organized and on time. Doing so will allow you to move confidently into the new year with new goals, as well as altered pre-established goals.

Properly closing out your fiscal year can aid in your financial planning model for the new year, as you can track and project what the next year may look like based on the past year’s successes and failures. Your organization’s financial data can help you determine what your path may look like in the year ahead. This time of retrospection also allows your business to take a more detailed look at ways to potentially save money, as well as important intel regarding your customer base.

This process is especially significant when it comes to small business bookkeeping and small business accounting, as small- to mid-sized companies are the ones who really need a good grasp of their economic past to help safeguard their financial future.

Small Business Year End Guide and Checklist

Here is a helpful guide and year-end checklist to assist in your small business with its year-end accounting to help you avoid the unwanted and unnecessary headaches that can often be associated with last-minute bookkeeping.

1. Compile and Analyze of Financial Statements

Financial statements paint the clearest picture of where your company stands economically, which provides valuable insights to help you make next year’s moves that much sharper. Make sure all your business’ accounting and financial statements and records are accounted for, including cash-flow statements, balance sheets, and income statements.

2. Maintain a Closing Year Calendar

Being organized is the easiest way to avoid any last-minute stress or confusion. Your year end checklist should include all important dates associated with various reports, including important data analysis dates and fiscal closing. By doing so, you can schedule and track the process of completing all required information to meet these dates and avoid any headaches down the road.

3. Collect All Past Due Invoices and Receipts

It may seem wild, but some people will actually start reading a new book without finishing the last one they were reading. This is okay if you’re blazing through the latest fiction best-sellers, but it can’t be done when closing the books on your fiscal year.

The fiscal year cannot be closed if there are any outstanding invoices or receipts. Make certain that your team is aware of what needs to be completed and try to give them enough time to do so without feeling rushed. Various automation tools help capture digital receipts, which can vastly increase the speed at which staff can submit their expenditure receipts compared to physical copies.

4. Review Accounts Payable and Receivable

Evaluate all payments or receipts to ensure they correspond to your company’s accrued amount. All records must be able to show the flow of cash that has entered or left the company.

5. Go Over All Entitlements, Incentives, or Tax Breaks

It’s important to remember to account for any grants, incentives, tax breaks, or government contributions or assistance that you may have received over the last fiscal year. These numbers might seem small, but it all has to be included in your fiscal year-end statements.

6. Make Sure All Data is Backed-Up

We have all done it, and yet it never stops being annoying: you go back to review a project only to find out that you didn’t save your work. Saving your work is always important, but when it comes to your company’s finances, backing up all data is essential. Verify that whatever backup tool you have in place guarantees the safety of your data. Doing so will help make the year-end closing that much easier and offer you and your business invaluable peace of mind throughout the year.

Leave it to the Pros

Financial matters are no joke and closing the fiscal year the right way is integral to a well-running business. Outsourcing your accounting and bookkeeping to a professional is a surefire way to ensure that you have all of your ducks in a row, and ready to take on the new year with gusto.

Contact us for more guidance and help associated with your bookkeeping and accounting, and start the new year off in style.

Photo by Glenn Carstens-Peters on Unsplash

 

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