5 Simple Steps to Preparing a Year-End Accounting Report – Our Guide
Accountancy can be one of the biggest nightmares for many small and medium businesses. A lot of startup business owners try to handle the books themselves, working on the accounting side of their company alongside everything else. But with the sheer amount of tasks that startups already have to put up with, from revamping products and services to building a steady client base, budding businesses really don’t have the time to file bank statements, track expenses, and mark profits.
Also, as the year-end report approaches,you may find numerous problems in the finance reports, finding an unexpected accountancy fiasco on your hands. This is why larger businesses prefer having a dedicated accounting team to handle all of the company’s finances.
As a small business, hiring an accounting team can be a cost you can’t afford. Lucky for you, you can avoid that messy year-ender with these five simple steps:
- Always prepare complete, proper documentation
Accountancy involves loads of forms to fill-out, and keeping track of all these can become a chore. However, being on top of the proper documentation and record-keeping is all part and parcel of good housekeeping, which will make it easier to get everything in order.
Accounting software will go a long way in this regard, as it’ll make being organized easier by keeping track of all your company numbers. Also, don’t forget to constantly file bank and third-party statements as well as invoices. You’ll need to keep both digital and hard copies for easy reference and review. You will also need to handle numerous one-off housekeeping tasks, but the specifics vary from business to business.
- Track everything constantly and regularly
Filing and tracking the documentation is a drag but putting them off can cause you to lose important files when you need them most. This is where having back-ups and timely documentation can save you from stress. Keeping a schedule on your accounting work and working constantly to meet that timeline will go a long way in easing up the work later on.
- File accounts early
Accounts can actually be filed nine months after your company’s year-end, but preparing and filing early won’t hurt. Accounting work is actually more time consuming than expected and waiting until the last moment can be hectic. Filing early gives you time to review for discrepancies and provides you the leeway to remedy the situation.
- Look back and check your sums
Once your accounts are finished, take some time to step back and look at the big picture. Compare previous years’ figures with the current, and check for discrepancies and glaring issues. By doing so, you might catch some minor issues that you didn’t see previously, and ultimately you’ll be able to recognize if your company is doing much better than in previous years.
- Review your process
Now that everything is done, spend a few moments to review your process. Ask yourself these questions: “Where did you go wrong?”, “’What steps were particularly difficult?”, “How can you improve the process and make it easier for next year?”
By constantly reviewing and streamlining your process, this particular duty will become easier with each succeeding year. As long as you build a schedule and maintain that timeline, you will find accounting to be just another necessary, daily task.
With these five steps, your year-end accounting report should be considerably less stressful. The specifics of accounting, however, can become much more complicated, and the help of a specialist might be required. If you’re looking for a top-notch and affordable accounting team to help with your year-ender, contact us now and see how we can help you!