With less than three months until the end of 2023, now is the time to focus on year-end accounting tasks that will help your business stay organized and ensure compliance with financial regulations.
Not sure where to start? We’ve rounded up a list of essential accounting tasks to help you stay on top of your finances and end the year strong.
Tax Planning
Now is the time to start planning for tax filing so the process is smooth and straightforward. Stay informed on any changes to the tax codes and make any final adjustments to ensure your business is ready to take full advantage of any relevant tax changes for the 2023 cycle.
The fourth quarter is your last chance to offset your tax burden with the purchase of any assets or supplies needed for the coming year. Prepaying for needed services in the coming year is also an option. Be sure to document any purchases and save your receipts. Neely’s Roanoke CPAs are ready to help you make any last-minute tweaks to maximize your tax strategy.
Financial Statement Preparation
After Jan. 1, be prepared to create three key financial statements: A balance sheet, an income statement and a cash flow statement.
To get ready before the year’s end, you can start reviewing your records. Some questions to ask yourself to stay on track: Do you have all invoices from vendors used in the last year? Did you issue all necessary invoices to customers? Have you reconciled all bank accounts? Taking care of this ahead of time will help you avoid a scramble in the new year.
Inventory Valuation
Inventory valuation calculates the value of any unsold product, and the calculation is needed for year-end balance sheet. The information will also help inform purchases during the coming year, ensuring you don’t overbuy but also have the inventory you need.
There are three ways to do this; each has a different method of addressing changes production costs throughout the year. Neely’s CPAs are skilled at helping you choose the option that makes the most business sense for your unique needs.
Budgeting
Annual budgeting is critical to the health of your business and will help you meet your key business goals for 2024.
Start with a review of recent year-end income statements, including the one for 2023, to assess regular revenue and expenses as well as how inflation affected those numbers from year to year. Then, factor in any known large expenses expected in 2024, including any needed capital expenditures. Understanding your cash flow will help you choose the perfect time to make those big purchases.
Neely’s Is Ready to Help
Feeling a bit overwhelmed at prepping for the new year? The great news is that you don’t have to do it alone! Neely’s Accounting Services has supported Roanoke-area individuals and business for 16 years offering big-city financial services with a hometown feel. Contact us today to see how we can help you.