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The year-end always brings up all kinds of challenges when you run a business. Depending on your business, you may either have your hands full with the end of year sales, or you find yourself slightly free and looking forward to the Christmas season.
When the year ends, there are several accounting aspects that you need to prep your business right for. One of the biggest reasons is that in another few months you will be filing for taxes and it does not hurt to prep up.
Organize your Documents
First you need to ensure that you have got all the documentation right. From your bills to your licenses to various government papers to all documentation of financial transaction; the end of the year is a time to ensure that your documentation process is tight and you haven’t missed anything. Get all the documents and store them in one place so that they become easy to find next year.
This process tests your bookkeeping processes, so keep your eyes open for scope of improvement.
Get the Account Done
Getting the accounts done now ensure that you or your accountant does not face an overwhelming job later on. Doing this helps you create clean and error-free accounting books that you can use later on.
Profit and Loss Review
When you get your books done, you will have a good idea of the profits and losses of your company. This will provide vital information on where your money is being spent and where the income is coming from. You can access whether your organization is closer to reaching its financial goals or not. By reviewing your expenses and income, you can make further adjustments to your business for the next year to improve growth.
This is also the time to review your financial statements along with your bank, credit card and other financial institution statements. You want to ensure both documents match up. Such diligence prevents any mistakes from being noted. Additionally, such a mistake could be a sign of fraud.
Get the Tax Documents Ready
By next year you are going to be filing your taxes, so it does not hurt to get a head start. Get the tax documents that you need to file. You can either get them from the internet (government websites) or from the government offices. This also gives you a good idea on how much tax you will be paying and what tax relief you can get.
Review and Prepare for your Financial Year
At the end of the year, it is time to review your financial goals, estimate what you have achieved and what’s missed. Start preparing your financial goals for next year.
These are elements that your 2015, end of year checklist can’t miss out on. So get to it. Additionally, it is always advisable to take the help of an accountant to ensure that your business accounting is being done right.