You will never like that feeling of sudden rush and paranoia as you realise how days run faster than before. So, there you are, and voila! It’s time to prepare your year-end accounts. And they are going to haunt you up to the last minute. As we all know businesses in the UK are required to submit year-end accounts and everyone should comply. So, if you are planning to go on this smoothly, here are the 7 tips to prepare your year-end accounts for 2022.
If you want to approach the end of the year with sufficient resources and necessary tactics to overcome future challenges, preparation not only for you but for your team and the business is a must. No one wants to go to war unprepared. Be prepared for at least a few months before tightening your expenses and catching up on your P.O.s and invoices. Ensure that your records are all processed and put through the system.Contact us now
2 Get Your Accounts Up-to-Date
List down all the figures that have been spent on and the unpaid balance from the debtors and all other financial records necessary. You’ve got to track the important figures such as the bills, invoices, and bank statements.
3 Keep Your Employee Data Accurate
Always secure accurate data of your employees and the expenses they have made during the year-end. The HMRC always checks the payroll and the expenditures to make sure that everything is synchronized when getting audited. If there are discrepancies found in the records, then your employee shall be held questionable and it will be difficult to trace back where it started. Double check their submitted expenditure reports before the year ends.
4 Organise Your Space
You get things done easily when you are surrounded by clarity and clutter-free. Segregate your files in order. Make a different partition for different paper files like receipts, invoices, and other files. This is not just about your office space but you can declutter and organise your space on your computer. If necessary, you can download apps to clear up the expense management process. This way, you can access the details easily when you are queried on any part of the accounts you are working on.
5 – Check Your Chart of Accounts
Check your Profit-and-Loss Report that is a part of your Balance Sheet. At the end of the year, the COA (Charts of Account) identifies and controls which accounts should be cleared down. So, you need to double-check and ensure everything is correct and updated.
6 – Check Your Data and Create a Backup
You can survive any catastrophic events only if you have a contingency plan. You’ve got to have plenty of options and backup plans if all other plans don’t work. This applies to year-end accounts too. For instance, by having an ERP system such as Dynamics GP, then you can back your financial data up. There will be no worries even when things go awry since you have a backup file.
7 – Don’t Panic
Everything is stressful during the year-end since all establishments are heading towards a new year. It is not shameful to admit that everyone gets much pressure and a high level of stress every year-and. So, if you are feeling that pressure and rush right now, just take a deep breath, declutter your mind, take things slowly at first, and organise your thoughts in the first place. Whenever you encounter problems whilst preparing your report, take a step back and evaluate everything and then resolve it.
Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.