The closing period is always a busy schedule for every accountant. All of the clients start overloading the accountants with their accounting books as well their data files so that they can issue financial statements for the year. This is why it turns out to be a complicated matter. However, there are always ways to make your life easier. Here are a few relieving steps that accountants can follow:
1. Undertake a bank recapitulating process for all of your bank accounts
When you undertake a bank recapitulating process, you will be able to match all of your checks, deposits and also the other debits which you may have entered in your ledger as to what has been cleared by the bank. It is advisable to perform this process on a monthly basis.
2. Recapitulate your credit cards with your general ledger
This procedure can be done by using the same procedure as above. In this way, you will be able to rest assured that you have in no way missed out on any sort of deductions which have been debited from your credit card. Even if your QuickBooks sheets may be up-to-date, it is always better to double check.
3. Update the inventory balance of your company
If you have a business where you are required to maintain an inventory of all your raw materials, it will be necessary for you to make materialistic inventory entries at the year-end. This can be done by valuing the summary of cost and then updating your QuickBooks application which will be able to show the exact value of the inventory that you will actually be having in hand. It is a list which you must always keep updated for an audit of your books.
4. Ensure documentation all company expenses in QuickBooks
If a firm is keeping its account books on a regular cash basis, this step is considered to be the documentation of all of the checks which have been written at the year end. It is similar to following bank reconciliation as mentioned in the #1 procedure above. In this way, owners will be ensured that all of their expenses have been entered in the concerned company’s QuickBooks accounting files. If they are liable to pay taxes, then it becomes necessary to record all of the amounts which they owe to vendors at the year end. In this way, they will be in a position to get credit for all of the expenses which they can deduct.
5. Recapitulate all of your accounts receivable which are outstanding and also the accounts payable
It will be necessary for you to regularly recapitulate and view the amounts which are standing out in order to ensure that any items haven’t been duplicated.
6. Establish a date for closing
It is advisable that you establish a date for closing at the year end. In this way, you will be assured that no unauthorized person is able to make any sort of alterations to your data before it has been prepared for the filing of your income tax return.
With these above steps, accountants can make it easy to work on their QuickBooks applications even at the time of closing and financial management rush.