The year is quickly winding down and the holiday season has officially begun. Before you become consumed with holiday cheer, it’s important to keep in mind that the dwindling days also means there are certain things that need to be done or reviewed before the clock strikes midnight for the new Year! Whether a small business or large, they need to wrap a nice bow on your bookkeeping.
Record & Reconcile.
Make sure your records are up-to-date with the most current and accurate information. Then, review all current documentation and records for accuracy, and check for any missing information and record as necessary. After, it’s time to reconcile for the year! Make sure your books match your bank account(s) and credit card statements.
Check Account Receivables & Invoices.
See if you have any outstanding invoices and double-check if the invoices have actually been paid or not, then update as needed. Reach out to those that haven’t paid and see if you can work something out before the end of the year. If there are any you know will never be paid, write it off and move on.
Go through your Payroll and make sure every employee’s paycheck has been recorded, verify their information is correct, and plan ahead for bonus payments. If you give out bonuses for the holiday season, make sure to record accurately, and remember this could potentially bump an employee into a higher tax bracket for that pay period.
If your business sells products, you will need to check your inventory. This can be a huge undertaking and needs to be done accurately! After, review with what your books say and make sure they match. Make any corrections as needed.
Review Financial Statements.
After all of the above is finished, it’s time to review your financial statements for the year. Go report by report, line by line, and truly try to get an understanding how your business performed in the past year compared to years past. Review your goals - did you hit them? While reviewing, check for any negative account balances, look for balances that may seem too high or too low (and review for any errors), and analyze for any significant differences from the past year.
Once all of this has been completed, you can officially wrap a bow on your bookkeeping for the year! If you keep up with your books from week to week, month to month, then you’ll find this process will be quick and easy! If you tend to leave your bookkeeping for later, this process may be more time consuming and frustrating, so consider doing it in shifts. Good luck!