The last week of the year is the perfect time to review the accounts of your business. In order to accurately conduct that business review, it is imperative to have easy access to all of your business accounts, invoices, receipts, bank statements, credit card statements, and so on.
Your small business accounting software can help you organize all of your financial records and coordinate with your bookkeeper and accountant online. Once all of the records are stored, there are ten important questions to ask:
- 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 your accounts and prepare for the new year and the tax-filing season.