As the year comes to an end, it is time to review the past 12 months
while also looking towards the future.
There are many things you should do as far as your taxes are concerned. Taking this one step further, there are a variety of accounting tasks that deserve your attention. Focusing on these details now can help you avoid trouble in the new year.
Below are five accounting tasks to complete before the calendar turns:
- Record all transactions in the proper account. This isn’t a task that should pile up, but it has a way of doing so nonetheless. If you have unrecorded transactions, now is the time to get organized.
- Review unpaid bills. For example, you may have outstanding bills from vendors. In this case, answer these questions:
- How much do you owe?
- What is the billing date?
- What is the payment due date?
Tip: you may find that some vendors offer a discount for an early payment.
- Send old invoices. As a business, your primary goal is to generate revenue and profits. If you aren’t sending invoices on time, you are holding your company back. Don’t wait until the new year to send old invoices. Review these, make note of the due date, and send them without delay.
- Review projected cash flow. Managing your cash flow is a job that never stops. The end of the year is a good time to forecast how much cash you will require to meet your financial obligations. This isn’t as complicated as it sounds. All you need is a cash flow statement that can be regularly updated based on your financial situation.
- Decide on employee raises for the coming year. While optional, it is something you want to strongly consider. How many employees will receive a raise next year? How much? On what date? Planning for this now can help you avoid personnel and cash flow problems in the future.