The end of the calendar year can be busy. There are the holidays, gift buying, parties, picking up people at the airport, dinners and just taking some time off. Who is thinking about bookkeeping checklists?
It’s easy to forget that the end of year means finalizing your finances, especially if you are a small business owner and your fiscal year-end is the same as the calendar year-end.
So in this post, I’m going to run through a checklist of items to cover or have someone perform for you, so you are set for the new year, closing out the old year and tax time.
Inventory Time - Do you carry inventory in your business? If so, you will need an accurate tabulation of what you are physically carrying, even if you have electronic records. It’s possible through errors or theft that the physical totals won’t agree to your accounting records. Taking the time to physically count what is on hand gives you the ability to compare to your records and make the adjustments so everything is in agreement. Do this now so you don’t have to do this on New Year’s Eve.
Financial Statements - are your monthly financial statements up to date? If not, when was the last time they were prepared? Were they reviewed by your CPA? Have you recognized all of your revenue and expenses? Have you accrued for expenses that have occurred but not paid? You will need updated and reviewed financials for your taxes, so if you are way behind in preparing these consider hiring outside help.
Presentations - Does your business present the end of the year results to its employees? If so, what information do you want to present, who will prepare it, what format will you use? Do you have last year’s powerpoint slides that you can update with the current year results?
How do you feel after reviewing the list above?
Calm and relaxed because you have everything covered? Good for you. You are a planner or likely have been through the pain before of not being ready and decided never to do that again.
Or are you even more stressed? Well, the good news is you still have some time, so don’t ruin your holidays. If you don’t think you will have enough time, resources or skill to do it all, consider hiring or outsourcing additional help.
Right now, I have openings for two additional clients and for a holiday bonus I am offering the first two months free if you sign up by December 31. I hope to hear from you.