Are you a small business and you are in the verge of doing your closing period of the financials? Year-end closing is the process in which companies inspect and update their accounting records (“the books”) at the end of the fiscal year. This is the critical final step in the company’s annual financial reporting process. The year-end closing process identifies any balances or deficits on the company’s books, which are then carried over into the new fiscal year. This lets you create more realistic budgets based on what was actually spent in the prior year. The ultimate goal is to maintain good fiscal hygiene and keep a close eye on the company’s financial health.
It is quite evident from established businesses that keeping of books and effective management of end-year procedures inform a true and fair state of affairs of the business. The company owner benefits from taking the initiative to strictly follow these accounting procedures as they inform the owner on where to put more effort to increase revenue or maximize profits in the long run. This is a value add for investors who seek to invest in a business based on accurate financial data that confirm the state of the business. Additionally, this enables the business owner to secure financing based on the company performance.
Many businesses face the challenge of doing their books and adequately preparing for audits. Ronalds LLP has scheduled a training that focuses on providing an exclusive hands-on approach to necessitate undertaking a smooth year end closing process. Proper year end closure procedures give your business an upper hand in the following ways;
Meet legal obligations
All companies have an obligation to share their final status each year. The annual close is also crucial in any audit, and consistent, accurate books are crucial to successfully running a business.
Create investor reports
There are investors who may be interested in financing your business as a result of accurate presentation of company financials.
Ensure effective financial management
Regularly examining the company’s books and eliminating errors reduces the chances of adverse financial issues down the line. The end year accounting process gives you regular opportunities to make sure that the company is set up for the future. In this case the business is able to project its future returns.
Our training shall delve on the insights on critical end year accounting procedures you need to consider and implement.