When you’re ready to close out your finances and prepare for year end, here are 5 accounting tips for small business to keep in mind.

Bring your books up to date 

As the year is about to end, it’s time to bring all your books up to date and reconcile all of your year’s expenses. Making sure that your books are accurate and up to date can help ensure that everyone ends the year on the same page.

This may include sitting down with your bookkeeper and ensuring that everything is closed out for this year and ensure that your business is ready for the start of the next, as it’s right around the corner! This way, you will also know what your business’s current financial situation is moving into the new year. You’ll know where your business is growing and what needs improvements to ensure your business’s financial health and longevity well into the future.

Review your business’s financial statements 

Once all of your statements are reconciled and you are sure that your information is accurate, it’s time to sit down with your finance department and discuss your business’s losses and profits for the year. This helps you further determine the financial health of your company. It will help also help you project your cash flows and business predictions for the year ahead.

Close your books

Once you’ve finished everything up for the closing year, you will be able to see where your business is and where you are going next. The next step in the process is closing your books at the end of a year allows you to have a new start for January. This means closing out any outstanding accounts and clearing up any outstanding bills and collecting any payments that clients owe your business. Resetting everything at zero allows you to be ready to start the new year financially back at square one! 

Prepare for the New Year 

Preparing for the new year means starting with a financially clean slate. Closing out all of your books for this year and understanding your projections for the next will give you a solid and current understanding of your business’s current financial situation and where that situation is going in the near future.

Moreover, determine what your tax payments will be so there are no surprises come tax day and go back through your information to understand any significant expenses or expenditures you had throughout the year so you can better prepare for the new year ahead.

 Allow an Accounting Partner to help you 

A lot of business owners feel bogged down with financial responsibilities, from balancing budgets to bookkeeping. Many businesses who have employees handling this aspect of business also feel that their employee’s efforts could be better put to other tasks. To alleviate this problem, consider using an accounting partner (like E&E!). It makes good business sense for an accounting partner to take care of your financials and bookkeeping while you work hard growing and improving your business.

For more information on planning for the financial future of your business, please feel free to contact us!

E&E Professional Accountants has years of experience in assisting businesses with their accounting needs. We are founded and managed by an experienced corporate auditor and a former CRA tax auditor. Feel free to contact us for assistance with all your accounting and bookkeeping needs.