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7-Point Accounting Checklist for the End of the Calendar Year

7-Point Accounting Checklist for the End of the Calendar Year

As the end of the calendar year approaches, companies are starting to prepare for the end of their financial year, which can coincide with the end of the calendar year, or fall on the 28th of February of the following year. This makes November the ideal time to start preparing your business’s accounts and reviewing your accounting systems and processes in preparation for the year ahead. To assist you with this, we have created a brief accounting checklist to expedite the process.

1. Take stock of how well you did

Analysing your assets, liabilities and equities can give you an indication of how well your business is performing. Use your accounting software to generate balance sheets and profit and loss reports to assess where your company performed well and where you can improve. Your income statement is a useful place to start, as it will list each revenue-generating item together with tax-deductable expenses, making it easy to assess your overall profitability.

2. Assess your payroll compliance

December is often bonus time in many companies. Ensure you have allocated these and withheld the required tax. Verify your employee data that is used in processing your tax reports. Check that Group-Term Life insurance adjustments have been updated and submitted as well as other compensation like taxable fringe benefits, business expense reimbursements and sick pay.

At GGD we offer scalable payroll services to our clients to free them from the overheads and time constraints that managing payroll can place on a business. We allow you to concentrate on your core business while we implement proven financial, administrative and statutory solutions that will elevate your efficiency and performance. For more information about our payroll solutions contact us today.

3. Collect your accounts receivables

Cash flow issues can seriously hamper the success of any company, no matter what its size. Before the year is up, an important point on your accounting checklist is to aim to close all your receivables by collecting all outstanding invoices. Commit to collect as much as possible and to clean up reconciliation issues.

4. Plan for tax

Now is the time to identify and plan for tax to minimise your payments and capture potential savings. At GGD we offer a variety of year-end provisional taxation services for companies and ensure compliance with current and future legislation through the various stages of your business’s growth. For more information about our holistic taxation services, contact us today.

5. Review your insurance policies and your business cover

The end of the year is often the time when insurance policies allow you to upgrade your policy cover. Even if time restrictions aren’t in place, it’s a good time to see if your insurance and policy advisors have any recommendations. Now is also the time to ensure you have all the statutory insurance cover you need in place and to make any necessary changes.

6. Prepare your Annual Financial Statements

As per the Companies Act (No71 of 2008 section 30) companies are required to prepare Annual Financial Statements within six months after the end of their financial year. It is not uncommon, for a number of reasons, for companies to fail in this regard, which can have severe consequences and penalties.

At GGD we work closely with all our clients to eliminate bottlenecks and introduce efficiency for quick turnarounds. We ensure that all the working parts of your Financial Statements – from Balance Sheet to Cash Flow Statement are clear, concise and free of irregularities. Our preparation of Annual Financial Statements and Accounting Officer’s Reports ensure compliance with international reporting standards for SMEs and non-SMEs. For more information about our Annual Financial Statement preparation, contact us today.

7. Check and update your software

The end of the year is a good time to consider your software investment and when new licenses or upgrades are due. Forward-thinking businesses are increasingly investing in smart, cloud-based software to automate many labour-intense accounting processes from reconciliation to payments, allowing employees to spend their time focussed on more high-value tasks

GGD is a Super Platinum Sage Pastel Business partner and we work closely with our clients to help them find the right software solutions to enhance efficiency and increase value.

We’ll take care of your accounting checklist

The GGD group can assist your business with your end-of-year accounting checklist and a wide range of other comprehensive, world-class accounting services that give your business the agility to compete in today’s fast paced world. For more information about our accounting, tax and payroll services contact us today.