69% of Americans don’t feel financially prepared. And as your business prepared for the financial year end, you may find yourself in the very same boat!
Tax deadlines, financial statements… there’s so much to think about! It gets stressful fast, especially since there are penalties associated with getting the numbers wrong.
We’ve assembled a quick guide to help your business prepare for the financial year end. Let’s get started!
1. Prepare Financial Statements
Tax deadlines tend to stress everyone out. But if you keep detailed track of your financial affairs, it shouldn’t be too hard.
You’ll want to start with profit and loss statements. This will give you information on your sales numbers, overhead, gross and net profit/losses, and expenses.
Pay special attention to the expenses, as they can translate to tax deductions. Anything helps!
A balance sheet and a trial balance are also good information to have on hand. These sheets will calculate the value of your company’s liabilities and assets. It also helps track the change in your business’ worth during the last fiscal year.
Invoices, receipts, and bank statements are also crucial. You’re calculating your financial actions for the business, of course. But you’re also responsible for your employees, too.
If they took trips for work, it’s likely they’re writing them off on their personal taxes. It’s important that the numbers add up.
If there’s been annual turnover, you’ll also want to ensure you’re sending accurate tax forms to the right names and addresses, too.
Are you VAT-registered? If so, it’s important to check that you’re claiming it correctly. If you’re charging the right amount, you’re good to go.
It’s crucial to check your status to see if you should be VAT registered. What’s your annual turnover, and does it meet the criteria for VAT registration?
The financial year end is a good time to calculate your total sale of services and sale of goods for annual turnover. If you meet the criteria and haven’t registered for VAT yet, do it!
3. Debit and Credit
What debts do you still owe at financial year-end? Even if you have someone that will prepare tax documents for you, you should still have a comprehensive view of your financial situation.
How much cash do you have on hand? What debtors and creditors are you dealing with? Are there any outstanding debts that need to be resolved immediately?
Coming up with answers can make the financial year end seem difficult. But with the right knowledge, it’s not so hard—find more information here!
Preparing for Financial Year End
Trying to prepare for the financial year end takes a lot of focus and knowledge! By getting all your financial statements in order, you’ll be better prepared for it. From compiling your reports to checking VAT registration to assessing debits and credits, a comprehensive view is crucial.
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