With us well into the fall season, my annual Gilmore Girls rewatch is officially underway. 🍂 Nothing screams organized and put together like Rory in the early seasons of the show. Throughout the series, it is often said that Rory has a strong need to make lists to organize her many tasks. As the year comes to an end, it is the perfect time to channel our inner Rory Gilmore. This is especially true when it comes to bookkeeping and it's important that you organize all of your year-end tasks. That being said, we know how daunting it can be to get your bookkeeping in order by the end of December. Luckily, we’ve created an easy-to-follow checklist that can help you organize your books for the year-end.
1) Record All Transactions ✔️
The first step is to ensure that all transactions for the year have been recorded. This includes the current year’s bills, invoices (even if they haven’t been paid), receipts, etc. It is important that you review all of your documents to make sure everything is accounted for.
2) Remember Bank Reconciliations ✔️
Now that you’ve recorded all of your transactions, it’s important to make sure that these transactions match your bank and credit card statements. To do this, you will need to do bank reconciliations. Using bookkeeping software such as QuickBooks can help make this process much easier.
3) Check Your Accounts Receivable ✔️
This check ensures that all payments have been received. This involves following up on any unpaid invoices and writing off any debts that are unlikely to be collected.
4) Check Your Accounts Payable ✔️
This process involves reviewing outstanding bills and checking that all vendor bills have been recorded and paid. You must also record expenses that have been incurred but not yet billed, such as utility bills or payroll.
5) Reconcile Payroll Records ✔️
A crucial part of year-end prep is ensuring that your payroll records are accurate. Be sure that all records are correct for each employee and include gross wages, deductions (CPP, EI and income tax) and any additional benefits.
6) Manage Inventory ✔️
If your business deals with products, you need to organize your inventory at the end of the year. Conduct an inventory count and compare it with your records. This count can allow you to make adjustments for any discrepancies, losses or obsolete items. By taking these factors into account you can ensure that the inventory balance on the balance sheet is accurate.
7) Review Your Financial Statements ✔️
This involves checking your income statement and balance sheet to ensure that all amounts are correct. Things to look out for include negative account balances, account balances that seem too high or too low and large differences in account balances as compared to the previous year. This review can also help you identify trends which can inform decisions about the future.
8) Review Your Plan for Next Year ✔️
With all of this financial information in front of you, it is a great time to start mapping out what and when tasks need to be done for the next year. This can help you avoid stress and save you valuable time in January.
While organizing your yearly bookkeeping can seem overwhelming, a little bit of planning goes a long way. Setting aside some time to get your books in order and planning for the next year can really make a difference to your business’ success. Trust us, your future self will thank you! With that in mind, the year-end is one of your busiest times and you may not have the luxury of committing all of your efforts to your bookkeeping. Here at STEPS, we offer small businesses bookkeeping services and would be happy to help you effectively wrap up your year. Visit the bookkeeping section of our website to learn more about what we offer or reach out to us on our contact page.
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