Year-end is usually a stressful time for businesses. Not only are companies busy to get accounting chores in order, but also struggle to cover all bases. It is important to devise a strategy for next year and plan in such a way that your books are in better shape than the last year. Here are few tips to plan your new financial year:
Getting Books in Order
A good bookkeeper keeps a checklist to ensure a good financial health of your company. As a responsible business owner, you need to make sure your accountant has sufficient information to reconcile the accounts of your business every month. An organized books throughout the year helps you maintain financial records up-to-date.
Your money spent during the year is called cash flow statement. Identifying your cash flows pattern is the first step to maintain limited cash outflow that doesn’t exceed your earnings. A cash flow problem arises when the outflows exceed inflows. Analyze your cash flows regularly to avoid year-end glitches.
Planning Your Year Ahead
Every year a business defines its goals clearly. Assess your 2020 goals and make a report. Check whether your goals were met efficiently. Identify if your debts increased by year end or were paid in full. Define next steps to create new goals for year 2021. Make a budget for the year ahead and plan to track your business expenses and taxes.
Keeping Employee Records
Year-end expense and payroll calculation errors can be avoided if your keep your CPP and EI calculations are up-to-date. Keep records of claims and pay slips.
Cloud Accounting Software
Investing in a good cloud accounting software makes managing your business a smooth process and helps your accountant or bookkeeper with year-end account management. You can benefit from access to real-time data. Preparing your income taxes becomes easy with a cloud accounting software. It helps streamline your financial records with the convenience of data backup for the whole year. Learn more about your options when it comes to choosing the best cloud accounting software. Book a free consultation today.