Further, we’re also including a handy checklist template you can customize for your year-end close, making sure you’re always on-point, on-track, and on-time with your year-end close and reporting. A major aspect of your accounting year-end procedures checklist is reconciling your bank accounts and credit cards. That way, you verify that your accounting records match your bank accounts.

Any receivables owed at the end of the year should be added as credits on the income statement, and debits on the balance sheet. Doing so will ensure you start the next fiscal year with the right financials. Ensure that your recorded transactions match evidence from credit card statements, bank statements, invoices and receipts. Take care to account for every cent to be audit-ready at the end of the year. Compare inventory accounts with physical stock (if appropriate), and review prepaid spend. This step determines the value of all assets that your company currently owns.

Daily accounting checklist (1–2 hours per day)

To ensure accuracy in year-end accounting, it is important to maintain accurate and up-to-date financial records throughout the year. Regularly reconciling accounts and reviewing financial statements can help identify any errors or discrepancies. Additionally, using accounting software can help automate many of the accounting processes, reducing the risk of errors. While accounting may not be what motivates you to go to work every day, it’s a part of the job. There are daily, weekly, monthly, quarterly, and annual accounting tasks you need to complete to ensure your business’s success. Not every small business can hire the help of a Certified Public Accountant (CPA) to produce financial records, manage cash flow, complete tax returns, and analyze the financial health of their company.

If you register as a limited company, you’re required to open a business account. Still, those registered as sole traders can use one to organise and separate their finances. When it comes to your year-end, there are few things worse than a mad scramble to fix items you could’ve addressed earlier in the year.

Question: Why is a checklist important?

Your income statement, or profit and loss (P&L) statement, summarizes your revenue and expenses. Your income statement lists all of the money you gained and lost throughout the year. And, statements let you see past and current finances so you can forecast your business’s financial future and plan for the new year. Tools like Spendesk give finance teams greater control and real-time visibility over company budgets, employee spending, and invoicing within a centralized platform. Features like mobile receipt capture and one-click payments enable employees and the finance team to stay on top of expenses, reimbursements, and approvals, instantly.

An “accounting process” is any type of work your accounting firm does such as payroll, tax, or bookkeeping. Financial Cents was solely built to serve as the best practice management software for accounting firms. Now, to maintain consistency across the entire organization, you’ll need to document the entire process using what is known as an “accounting workflow checklist”. The following checklist lays out a recommended timeline to take care of the accounting functions that will keep you attuned to the state of your business and streamline your tax preparation. Read through for in-depth coverage of your required tasks, or skip to the end to see a handy infographic to use as a visual checklist. This is why we’ve created 11 checklists to guide you through your accounting processes.

common costs of running a business

Investing activities include the cash inflows and outflows from buying or selling long-term assets, such as property or equipment. Financing activities include the cash inflows and outflows from borrowing or repaying debt, issuing or buying back stock, or paying dividends. Over 6,000 accountants and bookkeepers use Jetpack Workflow to standardize client work, automate deadlines, and track firm progress. Not only is a tool the place for your checklists (and checklist templates) to live, it’s also something that keeps everything organized for the team. Everyone can find a specific checklist, set up recurring tasks, and even label every item clearly. The right accounting software, like Countingup, will help you manage your new business accounting smoothly and efficiently.

• In addition to QuickBooks, there are many other accounting software options available.
• Simply put, the size of your organization and specific needs will determine what software fits you best.
• In addition, asset accounts should be reviewed to ensure that they are up to date and accurately reflect the value of the assets.
• Forecasting how much cash you will need in the coming weeks/months will help you reserve enough money to pay bills, including your employees and suppliers.

Your cash flow statement can show you the timing in which money comes in or goes out of your business. For example, you can see which months have a higher cash flow and the months where your business’s cash flow is struggling. You can find your business bottom line by looking at the difference between money gained and lost on your statement. Compare this year’s income statement to last year to analyze the differences in revenue and expenses from year to year.

This can be confusing, but we’ve tried our best to show you how simple these processes can actually be. To help you bring in your money when you need it, we’ve created this incredibly simple invoice generator. We’ve tried to put this pack together in a way which caters to a broad scope of accounting needs. This must be performed each year by certified professionals, and such independent audits add more value to your business than the regulatory requirements alone.

Why You Should Consider the Help of a Workflow Tool (3 Reasons)

Once completed, your controller, accounting manager, or whoever oversees that function, must review the reconciliations, look for discrepancies, and make sure everything ties correctly to the GL. Buttoning up those reconciliations is one of the most effective ways to ensure a reliable trial balance, proper financial reporting, and to help prepare for the auditors and their PBC list. Modern accounting technology can work wonders within your organization and when assisting clients.

Business stage

If your employees clock more than 40 hours a week, you might be liable to pay them overtime. It doesn't hurt to keep a close watch on their timesheets to avoid surprises and allocate budgets accordingly. Effective communication and efficient workflow are crucial for a successful year-end accounting process. Without proper communication, team members may not be aware of their responsibilities, leading to delays and errors.

Again, it’s best if your payroll service provider completes these reports and files them. Your job is to review payroll processes and data to make sure they appear reasonable. To ensure you are keeping best the complete list of financial kpis practices, view our What Is Payroll guide, created by accounting experts. At QuickBooks, our business accounting software is intuitive and easy to use, to ensure you can achieve these tasks with ease.

You wouldn’t be alone if that paragraph made your pulse quicken just a tad. Afterall, many accounting and finance teams tend to look at the year-end closing through a mixture of fear, trepidation, and loathing. But here’s the thing about the oft-maligned year-end close – there really isn’t much to fear as long as you organize, coordinate, and have a keen sense of direction. Same with the unrelenting onslaught of the calendar, peeling off days with unnerving speed as the new year – and your current year-end reporting requirements – edge closer and closer. Next, send out a mass email reminding these clients of their outstanding balances.