Top 5 Essentials for Closing Out Your Fiscal Year

It’s that time of the year again. Are you prepared to close out 2010? Do you have your financial records ready for your CPA or tax preparer? If your answer is a resounding NO, then keep reading.

You told yourself after last year’s year-end fiasco that you wouldn’t let that happen again, but the next thing you know, it’s December 31st. Then it’s March 15th and your CPA or tax professional is screaming for your financial records. You’re stressed and end up having to file for extensions, which results in penalties and interest. Take charge this year! Break the cycle and take control by using the following “5 Essentials for Closing Out Your Fiscal Year.”

1.) Make an appointment with your CPA or tax preparer, and meet with your in-house accounting staff. Your CPA or tax preparer should provide you with a list of items that they will need to start working on your taxes. The sooner you and your accounting team can get started, the easier your year-end closing process will be.

2.) Organize your financial records, preferably by month. Make sure you have back-up for all transactions. Your files should be organized with financial reports on top, followed by bank and other statements with reconciliation reports, and your transaction back-up (check stubs, receipts, deposit slips, etc) attached.

3.) Do an inventory of your equipment and other assets. If any items were added or removed, your CPA or tax professional will need to know so they can properly account for them.

4.) De-clutter. Toss any items marked for follow-up that are not significant to your accounting. They are most likely expired or no longer relevant. If you are not sure, place them in a separate file to be reviewed by your CPA or tax preparer.

5.) Review your current accounting system with your team and make adjustments to put in place for next year. The point of this is to avoid the stress for next year by planning now; you will eliminate the hassle and create a system that puts you in control of your business.

Not sure where to start? Management Consultants of America, can help. We specialize in systems development. We can take your drawers full of financial records and prepare them for year end. Call (866) 380-0745 now for your free consultation or visit us at www.bookkeepingonsteroids.com

 

LaVonne Shields

QuickBooks Expert and Consultant, LaVonne Shields has over 10 years of experience working in several industries (including banking, real estate, construction and non-profit). Her specialized training and consulting services help to provide peace of mind and relieve stress when it comes to bookkeeping and accounting all while improving the bottom line. She is the author of “Bookkeeping on Steroids,” and an instructor for the Inland Empire Women’s Business Center in San Bernardino.