What To Do For End Of Year Accounting?

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Year-end tends to catch most small business owners off-guard. Below, we look at things you can do to plan for the end of year accounting. If you need professional accounting services in Livonia, MI, contact one of our professionals at Numerico to schedule a consultation.

Review Your Business Income and Expenses 

Reviewing your income and expenses for the past year is critical to ensure the proper coding of all items in your chart of accounts. Don’t just rely on your bookkeeping software to ensure the correct allocation of income and expense accounts.

Evaluating your income and expenses can save you valuable time over the long run, and consistent mistakes can result in tax-related issues, which are crucial to avoid.

Look at Where You’re Spending Money 

Using your income and cash flow statements, evaluate your expenses as part of your end of year accounting process. Analyzing your expenses lets you identify mistakes and determine practical ways to manage your business cash flow, make better financial decisions, and grow your business.

When evaluating your business expenses, distinguish between avoidable and unavoidable ones. You should also note the nature of the expenses taking up the most significant portion of your business income.

You need to formulate strategies to reduce future expenses. For example, increasing your repayments on short-term loans can significantly reduce total interest. Regularly testing the market and asking competing suppliers for better deals can also decrease your fixed costs.

How Accounting Services Can Help 

As a business owner, you may be apprehensive about hiring someone for business accounting services. However, getting a professional on board will save you unnecessary costs and may even ensure the survival of your business.

A professional accountant will ensure that your tax obligation is as low as possible without compromising your tax compliance. Our accountants are up to date on all relevant tax laws and know which items you can claim as deductions.

We will provide you with a detailed and accurate account of your business’s financial health. By helping you understand receivables and collections, you have complete insight into your business’s cash flow and seasonality. A thorough understanding of your financial performance will allow you to make informed and strategic decisions so that you can set up your business for long-term growth.

Recording a business’s financial transactions, preparing and filing annual accounts for end of year accounting, and preparing tax returns is time-intensive, especially if you don’t have a background in accounting. Hiring our services frees up your time so you can focus on serving customers and growing your business.

Let us take care of your end of year accounting instead of spending valuable time struggling with unfamiliar software yourself and risking compliance issues.

Get Organized | Bookkeeping 

Establishing an automated and organized accounting flow is integral to healthy financial recordkeeping. Fortunately, thanks to technological advancements, keeping your business’s accounting records organized, updated, and accessible is easier than ever.

Ideally, you need to store your financial records in a digital format so you can easily retrieve them for financial analysis or statement preparation. As a professional accounting service provider, we will help you set up an accounting platform using secure and advanced software.

We also integrate other features, such as claims or payroll submissions, into your bookkeeping platform depending on your needs.

An organized and cloud-based bookkeeping system lets you record transactions as they occur, which means your financial records are always up to date. You can also access statements and journals at any time to monitor your business’s financial performance.

Keeping an organized bookkeeping system takes the stress out of tax season, as all items are readily available for analysis and reporting in your returns.

Get the Most Out of Your Tax Deductions 

At Numerico, we offer small business bookkeeping solutions to save you valuable time and money, so you can focus on growing your business. As a CPA in Livonia, MI, our end of year accounting services include accurate recording and reporting of financial transactions so you can make informed business decisions.

 With our federal and multi-state tax preparation solutions, you can rest assured that your business is fully tax-compliant and your tax obligation is as low as possible. We serve customers in Livonia, MI, and surrounding areas, including Plymouth, Canton, and Ann Arbor.

 To schedule a consultation, contact us today at (313) 278-8030.

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