4 hot accounting tips for the end of the year
Colourful falling leaves, brisk breeze that chills you down to the bone, scraping ice from the windscreen every morning... There are already plenty of signs heralding the end of 2019 and the start of a new decade.
In addition to sleet storms and the approaching holiday rush, the end of the year often means a large pile of accounting issues for entrepreneurs to handle. In this article, we list four accounting tips that help you to start the new year as smoothly as possible.
So grab your blanket and a hot beverage of your choice, light the candles, and enjoy the hottest accounting tips for the end of the year!
4 hottest accounting tips for the end of the year – save the checklist!
1: Predict your company’s result
Predict the result of your financial year well in advance. Your accountant can prepare preliminary financial statements on your company’s accounts; they show an estimate of your company’s result. If the financial year is not over yet, you can still influence your company’s result and the taxes to be paid.
2: Prepare for the financial statements
Have you remembered to invoice all existing transactions to be invoiced during the year? This is a good time to check and make sure that the transactions during the financial year so far have been invoiced. Invoicing after the end of the financial year is difficult – and not too flattering for the customer experience.
If your company has inventory, plan the stocktaking well in advance so that the value of the inventory at the turn of the year is entered into the accounts correctly.
Does the accountant have all necessary documents – receipts, invoices, travel invoices and other documents such as business agreements, board minutes, and balance statements? Ask your accountant to give a list of the necessary documents and deliver them to accounting in time so that your company’s accounts for the financial year are drawn up correctly.
3: Plan for the next financial year
Draw up a monthly budget, meaning an estimate of the income and expenses for the future financial year by taking advantage of the accounting data from the current financial year.
If you use a digital financial management system, the software will show you your company’s income and expenses at the monthly level. Several programs also allow you to enter or create a budget based on the actual figures; you can edit this to draw up a budget for the coming year. The budget will help you significantly with managing your company during the next financial year.
4: Stay on top of your company’s financial situation
Does your company’s accounting serve the company’s management needs at a sufficient level? Do the reports give you a good enough picture of your company’s financial situation that is also understandable? Is the accounting sufficiently up to date, or does it lag behind? Can you find information easily on your company’s sales at the level of the customer or purchases at the level of the supplier or transaction when you want it?
If not, now is the right time to update your tools and services for the modern times!
Is your company already prepared for the change? Accountor will take your financial management to the level required by modern challenges, doing its part to support your success. Contact us!