Time wise VA was set up to make business finances easier to understand (and to take them off your hands!). Since then, we’ve helped busy business owners get a handle on their money and year-end and grow their operations past a one-man band. Of course, it takes a while to get your cash flow into a position where you have spare capital to outsource operations.
So this blog was set up to provide hints, tips and insights from the eyes of the professionals.
Since then, we’ve written about lots of different finance topics. This month is no different! We might only be in September, but we think it’s about time to consider your Year-End Financial Checklist.
What do we mean?
You need to make sure that all your financial records are up to date, reconciled, and that you’ve prepared yourself for the impending tax season. So, let’s start off 2025 in a strong position.
Here’s what you could be doing. Our 5 point Year-End checklist:
1. Reconcile all of your accounts for year-end
- What do we mean? Ensure that all bank accounts, credit card statements, and loan accounts are reconciled. Compare your internal records with the statements to identify and correct any discrepancies. It’s really important to check your statements every month, and have copies of them to hand
- Why is this important? Reconciliation ensures that your financial statements accurately reflect your business’ current financial position. Having these real-time insights is essential for accurate tax filing and financial analysis. You can use this data to make projections for the year ahead, as well as understanding where to trim spending
2. Review accounts receivable and payable
- What do we mean? Go through your accounts receivable and accounts payable to ensure that all outstanding invoices are either collected or paid. Consider writing off uncollectible receivables (the invoices that are unlikely to be settled) and be sure to chase those still outstanding
- Why does it matter? Clearing up these accounts will help improve cash flow. You want to make sure that your financial statements are not overstated as well, something that is really important for both tax purposes and financial planning
3. Conduct an inventory count and valuation (if applicable)
- What do we mean? If your business carries an inventory, it’s important to take time out to conduct a physical count of products and match it against your records. You should also adjust your inventory valuation as necessary, to reflect any discrepancies
- Why is it important? Having an accurate inventory is crucial for “cost of goods sold” calculations. These directly affect your gross profit and taxable income. Don’t put this off until next year! The best time is now
4. Review and update fixed assets with your accountant
- What do we mean? Now’s a good time to review your fixed asset register. All assets should be accounted for and properly depreciated. Dispose of or write off any assets that are no longer in use. That’ll feel MUCH better!
- Why is this important? When you properly manage your fixed assets and depreciation records, you’ll have more accurate financial statements. You might also receive tax benefits through depreciation deductions
5. Prepare for Tax Season
- How can you be prepared? It starts with gathering all the necessary documentation needed for preparing your tax return. This includes income statements, expense receipts, payroll records, and any other relevant financial data. It’s worth double checking with an accountant BEFORE you do this to identify any last-minute tax-saving opportunities
- Why is this important? Being well-prepared for tax season not only reduces stress but also ensures that you’re compliant with tax laws and that you maximise any potential deductions or credits
Take some time to do this BEFORE the rush of Christmas (unless of course you want an excuse to get out of the festivities!). If you need any help working through the year-end checklist, or would like to enquire about starting 2025 with Timewise at your side, fill in the online form or call us direct on 07789 383699