2023 is right around the corner. While the end of year is often a busy time with the holidays, there are several year-end accounting items that should be completed to ensure your business is properly prepared for the upcoming year. Here are 5 accounting and financial initiatives to focus on before the end of the year:
- Perform an accurate year-end accounting close
- During the year, you should have been closing your books on a monthly or quarterly basis – however, you may have included estimates at the time of close or not been able to reconcile every account at the end of each period. At year-end, you should ensure that you are reporting on an accurate set of books of records. This means that all accounts should be fully reconciled, and all estimates are adjusted for accuracy. This enables you to build any future forecasts or projections on accurate data. In addition, this will assist tax preparation as well as any financial statements which are reported on.
- Analyze your budgets and projections
- While you should be constantly analyzing your accomplishments and challenges, now is the time to properly evaluate your budgets and projections and adjust as necessary. Look at what worked and what didn’t, and the modifications needed for the coming year. Adjust your budget to align with your current needs and ensure it realistically takes into account where you are headed. While it’s great to be optimistic, ensuring your financial goals are in line with your current path is important.
- Plan your inventory count
- Most small businesses only perform an inventory count periodically – however, an annual inventory count can be valuable for various business reasons. It ensures your tax and financial statement reporting is accurate while confirming an exact count of goods or materials on hand in the coming year.
- Begin your tax planning
- With a month left in the year, it’s important to meet with your tax advisors to plan for the upcoming year. Often there are tasks to accomplish before year-end which can help you properly execute your tax strategy. Begin evaluating your tax approach and plan to take the necessary steps to achieve your goals.
- Ensure you have the proper information to file 1099s
- Filing form 1099 is a daunting task that must be completed early in the year. It’s best to gather all information required from your vendors early to ensure that you are in compliance. Many business owners find themselves scrambling when approaching the 1099 filing date as it’s often an overlooked task. Gather this information now to remove the unnecessary burden.
While there are numerous strategic initiatives and tasks that you could focus on before the year is over, this checklist will help you prioritize your efforts to prepare for what’s ahead. By gaining a better understanding of your financial situation, assessing your budget and developing a plan, your business will be in a better position to achieve its goals. As Ben Franklin was quoted, “By failing to prepare, you are preparing to fail.” It’s always best to be ready when you can. If you have any questions or need assistance with your year-end planning, please reach out to your Janover professional or contact a Janover team member today.