Year-End Accounting is an Accounting process undertaken by companies at the end of each Financial Year to summarize and analyze business activities for the entire year. Companies carry forward the balances to new year accounts and close the previous year accounts. An accurate Year-End account process helps companies to be better prepared to start the next year with new accounts of the company.
Year-End Accounting is the tool to prove that the management is running the company fairly on legal terms. A company is accountable to its shareholders, creditors, and the government also. Therefore, it is necessary that companies go through a proper AccountingSystem to comply with laws and report accurate Year-EndFinancial reflecting the business activities for the entire year.
In order to be ready to enter into the new year, companies access financial records in their Accounting books and go through many steps to undertake the Year-End Accounting process, including;
- Income and Expense recoveries by the Accounts Receivable and Accounts Payable.
- Data Management activities for goods received and processed against a purchase order.
- Record Inventory – an accurate count of the materials and supplies.
- Get necessary documents ready to be given to the accountant petty cash records, invoices, and receipts, payroll records, sales records, etc.
- Gather and analyze Financial Statements to prepare Financial Statements – Income Statement, Cash flow Statement and Balance Sheet.
- And various others.
Year-End Accounting serves companies in the following manner:
- Advance Tax Estimation
Year-End Accounting determines the tax liability of the company for a financial year. Companies have to align their Accounting, Reporting, and Tax Filing processes to comply with laws and regulations. Accounting helps companies to get ready with tax insights and pay timely taxes that help to maintain their legal reputation.
- Documented Financial Activities
Through Year-End Accounting procedures, companies document all financial activities of the business for a financial year. It provides valuable inputs to prepare financial reports.
- Valuable Business Insights
Companies can analyze their business performance with the Year-End Financials based on Year-End Accounting. They are aware of their strengths and weaknesses. Year-EndFinancial Reports help companies to review their actual financial status. Based on the accounts prepared, companies get ready to finance their companies as required.
- Bank Reconciliation
Companies can reconcile their bank statements through Year-End Accounting procedures in order to identify errors, if any, in their bank accounts.
- Income & Expenses Insights
Companies can have inputs to be used to track the income and expenditure of their business. It helps to identify where to cut the expenses through substitutes or other business processes.
To prepare all relevant reports, companies need to undertake the Year-End Accounting procedure. To ensure accuracy, most companies, irrespective of size, prefer to outsource experienced AccountingProfessionals. Outsourced Tax AccountingProfessionals can help with the best practices for Tax Planning and maintain Tax Compliances even amid revising tax reform. With the increasingly complex nature of tax reporting and filing, outsourcing has been a trend.
To undertake the Year-End Accounting process accurately, companies can seek assistance from BFAG (Boston Advisory Financial Group).
BFAG is one of the renowned outsourcing partners with a collective900+ years of experience in end-to-end Accounting and Reporting solutions.
So, get in touch with us to avail our services.
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