Preparing To End a Financial Year Successfully

Year-End is a descriptive analysis of a company or a business performance for the period of 12 months.  It is a vital report as it is a statutory requirement. Banks, lenders, and potential investors take a keen interest in such analysis.

As an entrepreneur, business owner, or company executive, a financial year statement will advise you on how the business is doing in a nutshell. A thorough revision of the same enables you to make informed decisions about the firm, review business performance and come up with plans.

Here are some preparatory steps to take ahead of time in checking that your accounts are in order.

Come Up With a Countdown

Since this takes place alongside the regular daily duties, it may pose a significant challenge to as the workload intensifies. Bring your team on board and break down the activities. Let everyone know what is expected of them and their participation level. Communicate by when each assignment should be complete, and the encourage them to collect purchase orders and invoices, file and go slow on expenses. If there is any potential client out there, this is a perfect time to seal the deal.

Update Your Accounts and Employee Details

Ensure all figures of the financial reports are entered and correct. They should tally with the bills, bank statements, and invoices among others statements. Unpaid invoices should be well labeled as outstanding debtors with a clear summary of the amount, invoice date, and number. Do not wait until the last minute. In case some invoices are unlikely to be paid, attach a note with some explanation.

Bring the employees to speed and highlight the importance of attaching the valid documents like receipts to expense forms. If there are any pending employee details, get them in and up to date.

Some team members may have joined the business along the way and have not handed in some crucial details, see to it the details are up-to-date. Ensure calculations on expenses and payrolls are accurate as the business is liable for the tax and National Insurance deductions that are not correct.

House Keeping and Back up Data

All files should be in order and stored well in a sequence that is easy to find. This applies to both hard and soft copies. Having the records in order will help you tell if there is anything amiss and correct it in time. It also makes it easy for other concerned stakeholders to get any information of interest easily.

With software like Sage Accounts, you can tell if there is a problem as they have data checking routines that report any errors. Backup all data upon confirmation that there are no mistakes.

Review and Analysis

The approaching end of a financial year is usually an excellent time to do some introspection and examine operations. Analyze various functions of the company and the value they add to the business. Tough decisions may have to be made at this time. Some contracts end and if you are planning to source for new stakeholders, start sourcing as you approach the end of the year.

Since it is a time to evaluate meaningful business relationships and their value to the company, expand the scope of the search and check other ways to get bargains. Are there other benefits that an insurance service provider may add?

Some insurance products may be favorable as opposed to others as they come with additional benefits. For example, check how term life insurance compared with whole life insurance may be of benefit to employees. In some cases, the premium is high due to factors like age, prevailing conditions, and others. Talk to the concerned individuals and see if they can top up.

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