• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Business Finance Articles

Your First Financial Choice....

  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

Year-End Accounting: 7 Things To Know

Last Updated on March 18, 2022 By Jason Obrien Leave a Comment

The end of the year is a time when most organizations close their books. Despite being critical to every business, preparing a year-end account can be an intimidating process.

However, this article will show you 7 essential pieces of information that’ll help you take control of your year-end accounting process and prepare you for the new year.

Table of Contents

  • Hiring Tax Accountant Services Is Critical
  • Your Financial Statements Are Crucial
  • Past Due Invoices Are Still Relevant
  • Your Business Receipts Should Be Well Organized
  • Budget And Outcome Comparison Is Essential
  • An Inventory Of Your Assets Will Be Needed
  • Accounts Reconciliation Help You Maintain Balance
  • Conclusion

Hiring Tax Accountant Services Is Critical

While your in-house accounting department can do your year-end accounting, you can be assured of a more effective outcome when engaging with tax accountant services. Hiring accounting professionals will free up your time, allowing you to perform other relevant tasks.

The valuable insights these professionals offer can also help guide your business plans and enable you to make more strategic financial decisions. Additionally, having a fresh eye to audit your taxes can help you gain an objective view of your performance. Therefore, you can proactively streamline your systems to maximize profits.

End of the year certificate

Your Financial Statements Are Crucial

Financial records play a significant role during the compilation and analysis of year-end statements. Your financial statements can be regarded as your business’ lifeline. They give you a synopsis of your financial state by revealing your past and current finances.

Through your statements, you can also forecast a financial future for your business. Critical financial statements include your income statement, cash flow statement, and balance sheet. To have proper year-end accounting, you should ensure these statements are well prepared and readily available for each of your financial activities across the year.

Past Due Invoices Are Still Relevant

When preparing your year-end account, you should try to retrieve outstanding debts that your customers owe your business. Doing this might be challenging when past invoices are not available. However, having them handy lets you discover debtors after a brief cursory search.

With a simple invoice reminder, you can get some customers to settle their bills. However, others may require more effort to yield to your demands. The goal here is to ensure you don’t leave your money in the pockets of customers who have received your services. Getting your money back will help your accounting process be more comprehensive and further increase your financial strength for the new fiscal year. 

Your Business Receipts Should Be Well Organized

If you’ve not given much attention to your business receipts, you may need to think twice regarding this, because receipts are essential business documents and must be tidied up for the new year. Having disorganized receipts puts you at risk of inaccurate records.

Moreover, bad records increase the chances of making errors on necessary documentation, such as business tax returns. Organizing your receipts saves you from making costly accounting mistakes. You may pay for things twice when you have no payment record or exclude such expenses from your account.

A way to organize your receipts is by sorting them according to the expenses they represent. You can also have your receipts in folders or stored on digital devices.

Budget And Outcome Comparison Is Essential

Business budgets help keep financial expenses in order. Aside from assisting you in allocating resources, a budget aligns your investments to expected outcomes. Comparing your budget with your outcome is essential while preparing a year-end account. When you compare your budget at the end of the previous year to the results you’ve achieved at the end of this year, you can tell how well you’ve fared.

More so, such a comparison will help you spot areas you spend more money in than planned and those you spent less. You can use this information as a guide while preparing your accounts for the coming year. This way, you can apportion resources more to tasks and operations appropriately.

Balance Sheets

An Inventory Of Your Assets Will Be Needed

As you end the year, it’s necessary to count the available materials and supplies accurately. This proves helpful in several ways.

First, it enables you to have correct records of business materials and supplies. Secondly, you can note the supplies you will need to make for the next year and materials you need to get off your shelves/store.

If you run an inventory-based business, ensure you complete an inventory check as the year ends. Compare the total inventory on hand to your balance sheets. By doing so, you can make adjustments to any misalignments and have your records straight.

Accounts Reconciliation Help You Maintain Balance

Accounts reconciliation forms a significant aspect of your year-end accounting. Ensure your accounting records tally with your bank accounts. To make this reconciliation, compare your bank statements to your accounting records. Ideally, both records should match, but if you observe a discrepancy, then you need to do some inspection and inquiry. You should locate the origin of the mismatch and guarantee the records are equally balanced.

Conclusion

Having a well-prepared year-end account is a significant business outcome. However, the process doesn’t always come easy. Nevertheless, by focusing on the essentials, you can achieve desirable results. The tips recommended in this article will enhance efficiency and save you time and effort without compromising accuracy in preparing your year-end accounting.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Filed Under: Accounting & Taxation

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Transparent Customer Transactions

In today's digital age, ensuring the security and … [Read] about 6 Tips for Secure and Transparent Customer Transactions

peson using laptoop

Are you filled with ambition to build a business … [Read] about 4 Steps Quick Beginner’s Guide to Easily Sell Products Online

How does Blender Make Money

We are out of the era where artists, video … [Read] about How does Blender Make Money?

How-Does-Digit-Make-Money

In a dynamic business environment, where … [Read] about How Does Digit Make Money?

workers doing there work

The COVID-19 pandemic has ended, changing the … [Read] about Unlocking Workplace Harmony: Balancing Control and Autonomy

technology

In an era where digital exchanges evolve rapidly, … [Read] about Harnessing WBT: The Future of Digital Exchanges

business managment

As a business owner, you should be familiar with … [Read] about Essential Tips for Effective Performance Management

Nicole-Junkermann-and-Lynn-Good

Gone are the days when people thought the business … [Read] about Nicole Junkermann and Lynn Good: The Powerful Ladies in Business Era

happy man hand holding the box

The business landscape in 2023 is vibrant and … [Read] about Dropshipping as a Side Hustle in 2023: How to Get Started

Tax documents on the table

Airbnb has revolutionized the hospitality industry … [Read] about Mastering Tricky Tax Terrain: The Importance of an Airbnb Tax Accountant in the UK

Non-Profit

In the dynamic business environment, the … [Read] about How Does a Non-Profit Make Money?

mental health a girl

Young adults frequently regard life as an exciting … [Read] about The Importance of Preventive Care for Young Adults

risk management

CFA is a widely recognized investment management … [Read] about How Hard is CFA Level 1

afterpay make money

In the modern era maintaining a high living … [Read] about How Does Afterpay Make Money?

Chime-Make-Money

Let’s admit it, dealing with essential tasks in … [Read] about How Does Chime Make Money?

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow Us On
  • – Google News
  • – Facebook
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • App Makes Money
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018-2022 BFA