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Cup of hot cocoa or chocolate with marshmallow and notebook with to do list on turquoise vintage table from above, christmas planning concept. Flat lay style.
When companies are understaffed or putting their accounting to-dos on the back burner, they can make certain errors in reporting their finances. Overstatement of expenses, revenue miscalculations, and inaccurate debt changes are some of the most prominent errors that are common in companies at the year-end. These mistakes can not only lead to potential financial fallout but also damage your reputation by labeling you as disorganized.

The growth of your company is hindered because of these miscalculations and errors. These errors have significant implications on your general taxes as well as payroll taxes that can further lead you to pay costly penalties by the IRS. Establishing a solid year-end accounting to-do checklist will ensure that your business does not face any extreme circumstances that can hamper your reputation or burden you financially. Below are some of the guidelines to keep everything in order.

Keep a Check of Internal Operations

The amount of control you have over the internal operations determines if your business will be able to maintain accurate bookkeeping records for the financial year. Look for minute errors. To do this, you have to narrowly inspect each procedure that is currently being implemented. It has been researched that businesses lose more than $100,000 annually due to internal deceptions. Therefore, your accounting to-do list should prioritize the efficiency of internal operations.

Comply with Payrolls

Non-filing of payroll taxes can be a blunder to make for any business. The IRS has hard and fast rules for the filing of taxes related to employee payroll as it is not your money and you are only acting as a caretaker for the money until it is paid to the IRS. Also, the end of the fiscal year is a critical time for your employees as well because they are expecting increments and promotions. Giving them bonuses along with their payroll motivates them which will ultimately show in their performance.

Collect the Receivables

Research shows that 29% of start-ups fail due to a cash crisis. Therefore, your accounting to-do list for the year-end must focus on collecting all of the accounts receivables, which will also reflect positively on your balance sheet. You will have to push your clients to pay their remaining invoices as soon as possible so that you can clean up any reconciliation issues. Maintaining control over the cash flow of your company is key.

Conform with the GAAP

If your books are clean and everything is clearly mentioned according to the GAAP principles, you will attract more investors and your clients will be comfortable working with you. This is something you must follow all year long but, if you haven’t, consulting a professional accountant or bookkeeper must be on your accounting to-do list. Doing everything according to the rules will ensure that your company stays out of any trouble with the IRS, which is also an achievement in itself for your end of the year goals.

Plan for Income Tax

This is an important time for you to identify your tax needs and hire a professional so that you can minimize your tax payments in compliance with the rules. Many small businesses do not consider tax preparations to be a significant task and end up paying fines and penalties. Although you have quite a few things on your plate, filing your tax returns is not something to be ignored. Keeping your business out of trouble is important for successfully pursuing your business goals and objectives.

Budget for the Future

Most small businesses fail because they run out of cash. This happens because they have not planned in advance for their expected expenses that are related to hiring new staff, buying new equipment, or any other things that come up in the future. Your accounting to-do list at the year-end must include your budgeting for the next year. With assistance from all of your stakeholders, you must compile a budget for the next year so that your business stays out of trouble and all of your plans to expand and grow your business are recognized in time.

Review

The end of the year is always a time when you are filled with many tasks that need to be completed urgently. However, this sense of urgency must not elude you from reviewing the performance of the previous year. All successful companies in the world set measurable benchmarks which can be tracked at the year-end allowing them to review their performance instantly. Your accounting to-do list must implement certain measures to ensure that all of the objectives are being met and, based on the results, you can now plan for the upcoming fiscal year.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

 

 

Open book with figures and paper with words  accounts receivable.
Outstanding accounts receivables are among the most significant issues that businesses face. Reducing the time for your account receivables may seem like a distant dream, especially for businesses whose mode of operation is usually credit. While some clients may prefer to pay in advance, usually credit system are commonly used for business deals and often reach a conclusion smoothly, apart from certain instances. Businesses are often seeking answers to reduce their receivables for over 30 days and how to prevent that from happening in the first place. Some of the tips, below, are surely going to help you in this regard.

Ways to Reduce Outstanding Accounts Receivables

State Payment Terms Clearly on Invoices

Businesses often have extended lists of terms and conditions, which clients don’t really read anyway. While stating your terms and conditions is a good practice, the terms of payment should be clearly mentioned in bold on the front page. If you want payment in a week, state clearly that you want it then and failing to do so will result in penalties. By writing this, you put your payment policy right in the face of your client, which often pays off and usually results in a considerable decrease in outstanding accounts receivables.

Device a Standardized Follow-Up System

A lot of debt collection is based on past precedence. If the company is known for its laid-back attitude for payment collections, chances are that your clients may delay their payments. In addition, some businesses have no system in place for debt collection and are usually dependent on their client’s will. One of the ways to handle this issue is by emailing the invoice 7 days prior to the payment and again 2, 3 days before the payment. It sends a strong signal to the client that you are serious about outstanding accounts receivables and would like them to comply with the company policies.

In case someone does not pay up on the specific date, an arrears letter must be ready to be sent on the next day. Even after the letter is posted, you must have a follow-up plan on how to deal with such clients. Everyone in the company must be on the same page and should have a clear picture about the potential course of action.

Be Proactive

Having a system in place is just not enough when it comes to debt collections. Being proactive means that you have to ensure that the system is being followed properly. Even before that, it is critical to know that everyone understands the SOP’s and are collectively working towards clearing outstanding accounts receivables. Although you have a system in place, there should be a dedicated resource assigned to making phone calls to the creditors. Nothing beats a good phone call when it comes to collecting payments.

Automate the Process

Having an automated software to manage your bookkeeping needs does wonders for your business. There are many accounting software options that are great for managing everything from your sales invoices to maintaining income statements and balance sheets. Having all of the information about your customers in a software allows it to send and receive critical information at designated times along with improving the efficiency of outstanding accounts receivables which creates a professional image of your company. Automated emails are of great use in this regard. This software allows you to keep and edit notes on specific clients, which is accessible to every member of the collection team as well as other concerned departments. Therefore, everyone will evidently know the current stance of the client regarding their payment.

Use Professional Help to Collect Outstanding Accounts Receivables

If you have implemented all of the above-mentioned steps and still failed to collect payments, you may need an expert opinion. Debt collection experts will devise a plan based on your business model as they have the skills and proficiency in carrying out such tasks for many businesses. They can help you identify your possible point of failures and also highlight the key pressure points of clients who are the cause for concern. Reputable professional help is a viable option that may be considered, if needed.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

working investor with hand ordering trade stick market with laptop and paper chart on table
As an owner of a small business, there undoubtedly a lot on your plate…maybe even more than you can handle. From generating ideas to executing them and from following up and organizing meetings, there are a lot of things that you have to take care of. There are professional accountants and bookkeepers that you can find to take control of your business finances. However, it is very important that, as a business owner, you too understand the accounts of your company. Following are 5 business accounting tips for business owners to run a successful business that is financially secure.

1. Review the Accounts on a Regular Basis

When you leave your finances to be handled by your employees, you will start trusting the account handler blindly. That being said, it is not advised to leave your accounts solely on any one person. As the business owner, you should have a clear picture of what is going on in your accounts department to make sure you know everything and can pull strings, when needed.

2. Cash Flow

In today’s fast-paced business world, as a business owner, you must be aware of your cash flow. This should be taken care of both annually and seasonally. In-depth knowledge regarding the highs and lows of your cash flow cycle is going to help in providing you with a clear understanding on whether or not you need to expand and when to do it.

3. Tax Details

The tax details are something that you should definitely keep a check on. When it comes to small businesses, the business tax is sometimes also your personal tax. This is why you should be well aware of the details and amounts you have to pay in taxes. This helps you understand the expenses which you can and should deduct along with all of the various different types of taxes you are paying. When you have a clear knowledge of your annual taxes, you will have a better understanding regarding how you can file advance taxes and the number of resources that need to be set aside in order to cover the government taxes.

4. Frequency of Bookkeeping

Oftentimes, if you are the one who is undertaking the accounting for your business, bookkeeping might be the lowest on your priority list. However, it is very important that you maintain your books on a day to day basis. By doing this, you ensure that the accounting of your business does not pile up and that the important data is not lost or forgotten.

5. Accounting Checklist

The business books along with the accounting details can sometimes seem very difficult to understand and maintain. This is why it is very important that you keep in mind the numerous things which need to be included. For this, you can always design an accounting checklist for yourself.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.