Are you worried about the year-end accounting requirements to be completed and send to your accountant or the required authorities around your business? This is a daunting procedure to through especially in case of beginners. However, we have compiled everything about the year-end accounting checklist to get your woes sorted for this tax year. As this post has got you covered with comprehensive information about what important things you can add to your year-end accounting checklist to be precise and have a successful experience. Let us get further delved in the discussion to know a list of points to focus on in this regard.
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What is Year-End Accounting Checklist?
Several people are of the view that it is quite challenging to cover everything possible to send the year-end checklist to the accountant. An easy checklist to follow can sort out several problems and you will also be halfway there to preparing your accounting checklist for the year’s end already. This will possibly be a factor to even thrill your accountants. This will allow for saving a lot of time and energy to invest more productively. The popular and simple points to add to your checklist are listed and explained in the following.
1- Learn to Record all Your Transactions
Recording the transactions is one of the basic requirements and you might notice also everyone with accounting responsibility doing that. However, you must keep a record of every detail in an accurate and organised manner to keep it sorted by the end of a tax year. This will allow you to focus on invoices and bills that are not even paid yet. After that take a few moments to allow yourself to review all the documents you have recorded. This will make it clear that you have recorded possibly everything. There are several document apps that can be used to help in this regard.
2- Always Focus on Doing a Bank Reconciliation
Another important thing is totally the record transactions you have mentioned in your accounting record with the bank statement to ensure that the right kind of details is being recorded. This will keep you away from a lot of hassle and mistakes in the future. Your bookkeeping software will play a vital role in helping you complete this process. You will be required to do the band reconciliation in this regard. There are features in several software like QuickBooks and others to complete the record in an error-free manner.
3- Then Review Your Financial Statements
After you are done with the details recording and the process of bookkeeping, it is always safe and a practical idea to record the financial statement and tally your records. This will give you clarity of mind that everything is happening just in the appropriate way and the records appear to be correct. You need to go through the tiny part of the details and have a thorough review of the details. This will even allow you to rectify a lot of things before you send the details to your accountant.
4- Now is the Time to Check Your Accounts Receivable and Invoices
The experts always focus on suggesting keeping a regular check on the accounts receivables. The main thing this will give you the clarity of what you are receiving is just according to what you deserved to be receiving. There is an option of running the aged receivable report in the accounting or record software you are using. You can take the advantage of bookkeeping apps to keep things sorted and aligned.
5- Keep a Check on Accounts Payable
Once you are sure about your receivables, it will automatically bring you to the stage to be sure about the accounts payable. you want them to be correct before reaching the end of your tax year. The aged payable report is also part of the usual accounting software you are using to keep the record maintained. This will allow you to see through things to check whether they make sense according to the requirements or not.
6- Do an Inventory Count Carefully
Many businesses carry an inventory according to the requirements of the business needs. It becomes mandatory for you in such a situation to be sure that the inventory is being handled well and that you are aware of the current details to be added to this. Moreover, physical counting will help you a lot in this procedure and keep you sure about the records and details you are adding in.
7- Always Take out Time to Reflect
In the end, take the opportunity to keep the time to reflect on the whole tax year and your accounting practice. This will help you to find out the areas you need to work on for a better experience in the year coming ahead. Your business will grow to an even higher level. It sometimes becomes stressful and sometimes even joyful to see how much you have achieved in the journey of your business. With this practice of looking onto the broader horizon, you will be able to achieve even more accuracy in the coming ahead tax year.
The Bottom Line
Now that you have gathered a fair amount of information about what your year-end accounting checklist should be like, we can bring the discussion towards wrapping up. There can be several suggestions offered by professionals that you can follow to end the tax year with fine and accurate accounting details to be submitted to your accountant. However, we have kept it precise and to the point in the discussion. This will help you to keep it step by step until you achieve the desired results. We hope these few minutes of reading will help you to develop a better understanding of what you can add to the year-end accounting checklist, this will allow you to handle things better in the future.
Disclaimer: All the information provided in this article on the year-end accounting checklist, including all the texts and graphics, in general. It does not intend to disregard any of the professional advice.