Year-End Bookkeeping Checklist: Top 6 Tips on How to close your small business books?

As the end of the year approaches, small business owners are often overwhelmed with personal and professional obligations. However, amidst the holiday rush and personal preparations, it's crucial not to overlook one critical aspect of your business – year-end bookkeeping.

This article will guide you through essential year-end bookkeeping tasks, ensuring a clean exit from the current fiscal year and a smooth transition into the next.

What is Year-End Closing?

Year-end closing is about keeping your financial records accurate and up-to-date for a 12-month period. It's vital because it ensures precise annual reports for assessing financial health, simplifies tax preparation, and provides insights for informed decisions. Even if your fiscal year doesn't match the calendar year, you can follow these guidelines as a year-end checklist.

Year-End Bookkeeping Checklist

Review Payroll-Related Information:

Ensure that your payroll records are up to date. Check CRA’s payroll statement of account to ensure withholding amounts have been submitted and reconciled to internal reports. Verify employee benefit changes, deferred compensation, wages, deductions, and run a final payroll report.

Complete Forms for Employees:

File T4 returns on the last day of February following the calendar year to which the information return applies.

Take Inventory:

Accurately count inventory, if applicable, match them to your balance sheet, and resolve any inconsistencies.

Organize Business Receipts:

If you rely on paper records, organize your receipts by type of expense and chronologically. Consider professional help for proper organization.

Check Payables and Receivables:

Review outstanding bills and invoices. Tally your payables and receivables, as some businesses may need to pay taxes on accrued amounts.

Get Your Fiscal Records in Order:

Record additional bookkeeping entries, reconcile bank accounts with your check register, review credit card statements, and ensure accurate posting of business expenses.

Plan for the New Year:

Review your small business's financial performance and set goals for the coming year. Capitalize on the renewed energy and motivation that a new year brings.

Where to Get Help?

Don't worry if year-end bookkeeping seems complicated or if you're short on time and resources. Boost Advisors' financial experts are here to help you maintain financial stability, so you can concentrate on your passion—expanding your business. In summary, while year-end bookkeeping may seem intimidating, it's vital for your business's financial well-being. By following these tasks, you'll not only smoothly wrap up the current fiscal year but also set the stage for success in the coming year. Feel free to contact Boost Advisors for expert assistance with your bookkeeping requirements.

Are you ready to take control of your business's financial destiny? At Boost Advisors, we understand the importance of having a clear financial roadmap for your company's success. That's why we're thrilled to offer you a FREE 50-minute consultation! Don't wait; book your appointment now.

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