The Essential Bookkeeping Checklist for Small Businesses

Year-end entries are accounting entries made in the company’s financial books at the end of the fiscal year. The information is then used to prepare financial statements to show where the company stands in financial terms. One way to do this is to create a year-end accounting checklist for your business to streamline the closing process.

If you have to sell inventory for a deep discount, you could deduct it from your year-end taxes. Most invoices are due within 30 days, noted as “Net 30” at the bottom of your invoice. Find out how to integrate Process Street with the apps you use every day, like Quickbooks for generating invoices or Freshbooks for organizing expenses. This is one of your key reports for itemizing what the company owes and owns. This checklist guides you through what documentation you will need to consult, how to structure and record your report, and how to work out the important final figures.

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1. If you have to sell inventory for a deep discount, you could deduct it from your year-end taxes.
2. Completing the following monthly accounting tasks helps you maintain up-to-date records and avoid work piling up at the end of the quarter.
3. In this blog, we will understand the eight things to keep in mind while creating a year-end close checklist and how businesses can expedite the year-end close process.
4. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals.
5. To maintain financial integrity, carefully review all data to identify and correct errors before finalizing and sharing year-end reports with clients.

It also fosters collaboration, allowing team members to update everyone with real-time notifications. Reviewing your firm’s financial performance at the close of the fiscal year allows you to identify trends, profitability, and areas of improvement. Tax season usually starts in the first month of the year, so it’s best to be prepared beforehand to avoid delays and penalties.

Annual Financial Report Template

Or if an employee submits fraudulent expenses that generate a material loss for your business. With weekly invoices, the product or service you provide to customers is still fresh in their minds, so there’ll likely be fewer questions or qualms about the bill. If you wait too long to bill your client, you’re more likely to result in a delinquent payment. Financial Cents has over 50+ free workflow templates you can use to streamline your accounting processes.

It can help improve the accuracy of your books and records, save your team time, and prevent financial loss. Can I use this Monthly General Accounting Checklist Template for weekly processes as well? Our monthly general accounting checklist template will allow  you to effectively delegate work to your team members without batting an eye. Using the checklist, they will understand the minute steps it takes to get the work done. Since they have a guide to follow, they will be able to competently complete work without needing your input or making mistakes. Accruals are accounting entries that record revenue or expenses before the cash is received or paid.

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Despite the fact that closing the books at the end of the year is a challenging and complex task, a well-organized plan can streamline the entire process. To sum up, the combination of a good strategy, a comprehensive year-end checklist, and robust accounting software can significantly reduce the burden of year-end accounting stress. By following these steps you can close the financial books on time and have a solid base for strategic planning for the coming year. Automate recurring tasks, manage accounting workflows, and set deadlines to increase efficiency and productivity. You can also create workflow templates, such as a year-end review template (pictured below), enhancing your ability to standardize your closing process and maintain work quality.

Review Quarterly Payroll Reports and Make Payments

Project planners like a Gantt chart can be a great way to keep track target costing and how to use it of inventory and help allocate resources. As per a recent study, 85% of C-suite executives say poor communication with their customers has led to nonpayment. However, despite knowing its importance, a recent study shows that 60% of SMB owners feel ill-equipped regarding their business finances and accounting. All 1099s must be filed with the IRS online or through the mail before January 31 to avoid penalties. Employees may be entitled to it if they worked more than 40 hours, but it can result in a surprise cost for employers.