Year-end doesn’t have to be stressful or expensive. The businesses with the smoothest year-end are the ones that tidy up their books in November, not January. Here are five things worth doing now.
1. Reconcile every bank and credit card account
Go month by month and make sure your books match your statements. If a month doesn’t reconcile, find out why while the transactions are still fresh in your mind. Small differences left alone tend to grow into big questions later.
2. Clear out “uncategorized” and suspense accounts
Every dollar sitting in an uncategorized account is a question your accountant will have to ask you at year-end, and each question adds time and cost. Review these entries now and move them to the right accounts.
3. Review your receivables
Look at your list of unpaid customer invoices. Follow up on anything overdue, and identify any amounts that may not be collectible. Cleaning this up gives you a truer picture of the money you actually expect to receive.
4. Make sure every bill is recorded
Unrecorded supplier invoices make your expenses look lower than they really are, which overstates your profit. Gather any bills sitting in email inboxes or envelopes and get them entered.
5. Check that GST/HST and payroll remittances match your books
Compare what you’ve filed and paid with what your books show. Differences are much easier to sort out now than when T4s and year-end filings are due.
A note for contractors
If you work on projects, bring your WIP (work-in-progress) schedule up to date as well. It makes sure your year-end revenue reflects the work you’ve actually completed, not just what you’ve billed.
The payoff
A clean November means a faster, less expensive year-end, fewer surprises, and numbers you can actually use to plan the year ahead.
Need help getting your books ready for year-end? AD Accounting & Bookkeeping Inc. offers catch-up and clean-up services for small businesses and contractors.