Hey, it's that time of the year to pack up all your paperwork and send it over to your accountant. A bit of a headache, huh? But don't stress, we've got a few tips here to help you sort things out before you wave goodbye to those files.
- Wrap up all the transactions. Make sure you're reconciled up until the month after the year-end.
- Check over your balance sheet accounts, do they look okay? Print out a balance sheet for your year-end date and tick off accounts as you look at them. Notice anything funky in accounts like 'Uncategorized asset?' Does your inventory match up with what you've got in the warehouse? Keep an eye on petty cash.
- Don't forget about your payroll liabilities. Was that Payroll Taxes amount sitting at yearend the same as the amount you paid in your January remittance? If not, there might be a bit of a mix-up. Does the Vacation Pay balance match up with your current staff and what you owe them? I’ve found vacation pay balances still sitting from employees long gone from the company.
- Keep an eye on your GST Payable. It should equal the amount you filed for the year-end.
- Make sure your loan balances are correct at year-end.
- Check out your Profit & Loss. Run a profit & loss with a comparison to last year. Go through a few random transactions to ensure they're in the right account with the correct taxes. If there are numbers that are way off from last year, check to make sure the changes add up?
- Don't forget to gather your documents. Collect your donation receipts, Co-op T4A's or equity statements, and any asset purchase or sale documents. The accountant will also be delighted if you send them all your bank statements as of your yearend date.
- Last but not least do not change anything on those files once they are sent off, your accountant will thank you for this as it can mess up their trial balance.
These are just a few tips to ensure you get your books all cleaned up and sent on to your accountant. If you need a hand sorting out your bookkeeping, don't hesitate to contact me via my email lori@aspenlane.ca.