Everyone is getting in the festive mood. But for small business owners, maybe just not yet. They have to ensure that their annual accounts are in order by December 31.
Annual accounts show how the business performed over the year. They help the business owner to understand what’s happening with their company’s finances. They reflect the financial health of the company and it’s crucial that they are prepared correctly.
However, there are many different ways of preparing these documents, which means it can be easy to forget something or make a mistake when doing so.
To ensure you get things right this time around, follow our four tips below:
1. Don’t Wait Until the Last Minute
This is perhaps the most important tip to keep in mind. Never wait until the last minute to start doing your annual accounting. It’s easy to miss out crucial information when you’re in a last-minute rush to complete the job. You’ll also be able to prepare for next year’s budgeting process much more easily if your books are already laid out and organized for easy reference as well as creating new financial goals for yourself.
2. Keep a track of everything
Whether you’re doing your accounts manually or automated, it’s essential to keep track of all your transactions. Have all the information you’ll need and have a good understanding of what is required for each section of the annual accounts, as well as any additional documents that need to be submitted with them.
Your records should be kept in a secure location- whether online or offline, and make sure you have a good backup system in place if something were to happen.
3. Make Sure You Are Using the Right Accounting Method for Determining Profit or Loss
Always use the right accounting method for your business. It helps to make a more accurate analysis of your profits and losses. Pay attention to your assets, liabilities, equity, and loans to or from company officials.
There are cloud accounting solutions such as Xero accounting software that can help you get everything right.
4. Get Professional Advice and Help
Professional advice can be invaluable, especially if you’re an SME trying to grow your business. Enlist the help of someone who has specialized in doing end year accounting, such as Coffey & Co. accountants. For example, if you’re working with a lawyer or accountant who doesn’t specialize in business finances, they may not be able to offer as much assistance as they would if they had more experience with similar projects.
As a small business, you may not be able to have these professionals in-house. We offer accounting services that are tailored to your business needs and budget, so you only pay for the services or support required.Contact Us – Coffey & Co. (coffeyandco.ie)
Let Us Help You File Your End-Year Accounts Correctly
Having good year-end accounts will give you a good foundation to start on the next year. The earlier you start, the better. At Coffey & Co., we ensure that you get your annual accounts done with confidence and not stress out about it.
Get professional accounting services that’ll help you with the numbers and ensure that everything is accurate and up-to-date.