Talking Cents

A Small Business Checklist at The End of the Financial Year

You can begin to consider where you were at this time last year and how far you have come as the end of the year draws near. But business-wise, this is one of the most crucial times.

It is time to evaluate your progress, update bank statements, restore and reanalyse your inventory, reconcile major accounts, keep your receipts, tax-related files, etc. Therefore, it would be very convenient if you had a checklist ready in front of you. You can compute if everything you need for your small business is organised.

This will help avoid any last-minute surprises or chaos, given that the holiday season leaves you very little time to do much work.

1. Review your Previous year's Business Goals

All businesses must have a set goal for each upcoming year. This helps streamline your resources in getting precisely what you expect. Therefore, realising how far ahead you have come and what steps you need to take to maintain your streak or improve your performance is critical.

2. Do all your Reconciliation work

Bank Reconciliation is the process of explaining your expenses against your bank statement. Small or medium businesses must do this regularly on a weekly or monthly basis. If done right, this will save you a lot of time and effort during tax season.

However, at the end of the year, you must have a thorough reconciliation done for year around expenses. Additionally, you must cross-check all the transactions carefully and keep the corresponding receipts and files handy.

3. Prepare End of the Year Financial Report

As you may know, financial reporting is essential for any business. You must know your cash flow, profit and loss statement, and Key Performance Indicators (KPIs) to know what area is doing well and which needs improvement.

4. Prepare Budget and Revenue Goals for Next Year

Based on the financial reporting, you must move to the next year with zeal and preparation. After going through all statistics, and KPIs, you must move forward by setting your budget, making necessary changes in the workflow, hiring new staff for better performance, etc. Make sustainable revenue goals and create a roadmap to achieve the same.

5. Backup and Revamp

This may seem insignificant, but it is very crucial. You must back up all your accounts, vendor files, computer hardware, bank statements, etc. You must also inspect your inventory and take executive steps about its restocking, expiry, etc.

Consider M.A.S. Partners for Your Small Business Accounting.

When it comes to accounting needs for your small business, there are many things you may need—taxation, financial reporting, revenue goals, etc. We are here to help you with all of these needs and more. Contact us for assistance in business accounting in Sydney and Zetland. For more information about our small business accounting services, click here.