Tasks Every Small Business Owner Should Be Doing – Part 4
We’ve come to the final part in this four-part series on tasks every small business owner should be doing.
The series to-date has covered daily, weekly, monthly and quarterly tasks. In this post, I will go over annual accounting tasks for the small business owner.
You may not necessarily have the aptitude to complete all these tasks yourself. Depending on the size and complexity of your business, the expertise of a qualified accountant may be necessary.
4 Things To Do Each Year-End
1) Review Past-Due Receivables
Run your accounts receivable aging report close to year-end to get a sense of how much of your projected revenue is at-risk. Send out reminder notices to all customers/clients whose payments are outstanding. Now is the time to write-off any accounts you don’t think you will be able to collect.
Complete a full inventory count. Review the value of unsold inventory and determine whether or not to write-down unsold inventory. Inventory write-downs translate to tax deductions, thereby lowering your taxes. If you don’t write it down, you may be overstating your inventory and paying more taxes than you should be.
Even though the deadline for employers to issue T4s to their employees is Feb 28th, it’s best to get this task completed sooner than later. Ensure your payroll balances are correct before proceeding to the final step. If adjustments to payroll remittances are required, it’s better to make them before finalizing your financial statements.
4) Financial Statements
Carefully review your financial statements for accuracy before bringing them to your accountant at tax-time. Depending on the arrangement with your accountant, you may end up with a larger bill if there are numerous adjusting entries required to get your books into balance.
Most business owners don’t get into business thinking that they will need to devote so much time to financial tasks but without the basic financial foundation, the ability for your business to grow and thrive will be limited.
Accounting software like QuickBooks can help you generate financial reports and manage taxes, but for more guidance, reach out to a professional accountant. A Chartered Professional Accountant has the expertise to help your business thrive and may see the little things you can’t through an analysis of your operations and financial statements.