The last week of the year is the perfect time to review the accounts of your business. Unless you’re away on vacation and ringing in the new year elsewhere, of course. But in order to accurately conduct a business review and ask all the right accounting questions, you need to have easy access to all of your business accounts, invoices, receipts, bank statements, and credit card statements.
It might sound easier said than done—but think about it: if you’re scrambling last minute to find receipts or have zero understanding of where your business sits financially at year-end, how can you properly plan for next year?
To prep ahead for the new year, it all comes down to reflection. Quick and easy access to all necessary business accounts (think, your chart of accounts) and documents are key.
10 Small Business Accounting Questions to Ask Yourself
Your small business accounting software can help you organize all of your financial records and coordinate with your bookkeeper and accountant. It doesn’t matter if you’re meeting your accountant in-person or online.
Once all of the records are stored in a centralized location, start prepping for next year by asking these 10 important questions:
- Are my general ledger balances reconciled with my bank statement balances?
- Are there any accounts receivables or bad debts that can or should be written off?
- Are the inventory balances correct—do they include inventory items that should be written down to match their actual market value?
- Are the listed fixed assets still owned and properly depreciated?
- Have all adjustments been made for any prepaid items such as insurance and fees?
- Have all payables been accurately recorded?
- Have all payroll tax liabilities been reconciled with the quarterly reports?
- Are all of the notes payable accounts (loans) reconciled with the bank statements?
- Are all debts included in the year-end financial statement?
- Are all accounts receivables been reviewed and correctly aged?
Ideally, these questions have been addressed every month and every quarter of the current year. But at the end of the year, it is a perfect time to complete a final check of all your accounts and prepare for the new year and the tax-filing season.
If you haven’t been on top of these questions throughout the year, then next year is the perfect time to start. From managing your accounts receivable and accounts payable to making sure your reconciliations are accurate and up-to-date, TrulySmall Accounting can automate many aspects of your bookkeeping so that year-end doesn’t have to be so overwhelming. Try it for free today to find which product best suits your small business needs.