The end of the year will be upon us soon, and if you don’t know what to do, there is a chance your business accounting records won’t be as organized as you need them to be. No need to worry; we’ve created a list that will help you determine what you need to do as you draw closer to tax planning.
Read on below and take this as your official business accounting guide.
What Makes Closing the Year Challenging?
There are several reasons why closing the small business accounting year can be more complicated than it has to. The first and most common are human errors because,lets be honest, when you’re trying to juggle several business processes, things can be entered wrong or paperwork misplaced.
Another reason it can become challenging is when there’s not enough communication between people that work within the company. This could mean not sharing results with each other or numerous emails that aren’t as straightforward with the directions that need to be taken.
With that said, there are several other reasons that closing the accounting year can be overwhelming, but here’s what you need to do to make things run as smoothly as possible.
Work With a Certified Accountant
If you’ve been in business for a while, you know there’s nothing like working with someone with expertise and knowledge of what they’re doing. This is why the first thing you should do when preparing for the end of the accounting year is to contact a certified tax accountant consulting firm.
Not only will they be able to tell you what they can do for you, but they will have client testimonials to back it up.
Have a Schedule
Having a finance management schedule will keep you organized and ensure you check everything off your list; it helps you stay on track with meeting your deadlines. To create a schedule, you need to identify important dates and deadlines you need to meet, giving yourself ample amount of time to get everything on your list completed.
Create a physical calendar you can reference and cross it off as you take care of everything on your list.
Settle Outstanding Transactions
The next thing you need to do is to settle any outstanding transactions. From there, you need to review all past transactions and ensure there are no discrepancies in your company records.
By doing this, you can make the tax auditing process easier by accounting for every cent that has come in and out of your company. This is also known as settling your accounts receivable and payable accounts to ensure everything is accurate.
If there is anything that doesn’t match up, you’ll be asked to clarify what has taken place.
Business Accounting: Things to Know
When it comes to business accounting, there are some things you need to know. First, you must settle outstanding debts and ensure all transactions match your records.
And it’s useful to hire a consultant that knows what they’re doing. Are you in need of tax planning help?Contact Parker Business Consulting & Accounting.
Parker Business Consulting & Accounting, P.C. is a unique firm with more than a combined 75 years of experience in private industry, coupled with a strong background in public accounting. This combination enables us to provide valuable assistance based on direct experience with many of our clients’ same issues.