How to Prepare Your Business for the End of the Year

By
Real Estate Agent with Cooperative Real Estate Team
https://activerain.com/droplet/qt8

We spotted this post on the Kashoo blog:

Yes, it’s here: the end of the year, and a busy time for you as a solo practitioner or small business owner! As the new tax-filing season looms in the first quarter of the new year, it is also the time for you to review your business finances.

If you have been faithfully utilizing your small business accounting software, it should be very easy for you and your accountant to generate the reports and financial statements necessary for your end-of-the-year review session. Year-end financial statements are used to prepare taxes, are used as the foundation for all other reports in the future, and are used to assist with the important future business decisions you will be making.

In the U.S., many of the tax credits for charitable contributions may be ending, so this is also a good time to review and re-evaluate your year-end donation strategy to ensure that your funds reach your charities in time.

The year-end financial statement that you and your accountant generate should include:

  • A review of the balances of each account, including any subsidiary balances. Are these balances what you expected? If not, what should be included or revised?
  • Ensure that all assets and liabilities are accounted for; sometimes you might “remember” an event or issue that fell through the cracks.
  • Thoroughly review the sales, cost, and expense accounts: when compared to prior years, are any increases or decreases in these accounts reasonable and within expectations?
  • Reconcile all of the accounts with the general ledger to ensure all entries are legitimate and accurate.
  • Look for any trends and business practices in this year that will help you to run his/her business more effectively and efficiently next year.

 

Submitted by Deborah Boza-Va...

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Tags:
nayda e reyes

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
134,231
Marcia Kramarz
Re/Max Executive Realty - Medway, MA
CDPE,LMC,CBR

OMG - I can't even think of reconciling end of year accounts - TOO EARLY for me - But a good idea - I just had my last (difficult ) close at 4pm today - 

Dec 30, 2011 12:44 PM #1
Rainer
8,071
Nayda E. Reyes
Cooperative Real Estate Team - Coral Springs, FL
We're NOT in Sales, We're in Service

Hi Marcia,

Congratulations on your closing. Just in time for New Year. :) 

Dec 30, 2011 12:54 PM #2
Rainer
107,937
Ted J. Macy
Top Agents Atlanta Metro - Milton, GA

Year End is always an interesting time for those of us who are self employed, Gather all of those receipts, balancing all of the checking accounts. sending a check to the POOR PEOPLE at the IRS.

Have a Happy New Year

Dec 30, 2011 02:04 PM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
8,071

Nayda E. Reyes

We're NOT in Sales, We're in Service
Ask me a question
*
*
*
*
Spam prevention