For most, the end of a calendar year heralds the approach of long vacations, year-end festivities and new year’s resolutions. For small business owners, the frenzy dials up a notch. On top of trying to squeeze in as many sales before the holiday season hits, you might have to close your accounting books, submit filings to government bodies, review the past year’s business performance, and plan the year ahead.
It’s no surprise that business owners tend to dread this period, especially combined with your business’s financial year-end. Breezing through the last few months of the year may seem like an oxymoron, but we’re here to tell you: it’s possible. All you need to do to be on the front foot is a little bit of planning, and have the right technology supporting you.
1. Know your statutory obligations:
Have a clear picture of what your company’s statutory obligations are with ACRA and IRAS, and the documents you need to file within the defined deadlines. Setting up recurring calendar reminders for yourself and your team members is another great way to stay on top of things. Try for a month, week and the day before the filing deadlines so you can stay on track and ensure that no one forgets. There are late penalty fees if you miss these deadlines.
2. Prep your financial statements:
You’ll likely need to prepare a statement of profit and loss and other comprehensive income and/or a statement of financial position to accompany certain statutory filings. Setting up the advance reminders (as suggested above) will go a long way to helping you stay on track with preparing these documents. But using an online accounting software with powerful financial reporting tools can help you generate these statements quickly. You also won’t have to enter the numbers manually, which reduces the risk of human error.
3. Meet with your accountant or bookkeeper
If you work with an accountant or bookkeeper, now is an opportune time to have a conversation with them. Start by going over action points for your business’s financial year-end, the past year’s performance, and your business goals for the year ahead. If you don’t currently work with an accountant or bookkeeper, think about how one can support your business in the new financial year. Especially if they’re able to use technology to take the stress out of accounting and the financial year-end – find an accountant or bookkeeper now.
4. Check the health of your business, and plan for next year
Now that you’ve got a complete set of accounts for the year, you’re in a great position to review your business performance, and make strategic decisions to help your business be more profitable and grow. Reviewing your technology systems is a good idea at this time, and you should look at implementing online accounting software that’ll take care of the admin work, and make life a little easier.
Download our free Small Business End-of-Financial-Year Guide to take you through the above tips in greater detail. You can also check some of our tools and resources that’ll help you enjoy a more relaxing financial year-end.
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