What Are Year-End Accounts?
Year-end accounts are a financial document that any company would prepare at the end of its financial year. This document would include information like the business sales, expenses, profit or loss, assets, liabilities and equity for that particular financial year. It offers an opportunity to evaluate your business’s financial health over the last 12-month period.
But what’s the financial year? It’s a twelve-month year, similar to our calendar year. However, like our calendar year, the financial year doesn’t start at the same time for every company. It usually starts when the business is established. Therefore, it differs from company to company.
Year-end accounts are also sometimes called company accounts, financial statements, and year-end financial statements. So if you hear any of these terms, don’t get confused. All of them mean the same thing.
Now that you know what year-end accounts are, let’s understand their purpose.
Why Are Year-End Accounts Needed?
Year-end accounts are basically a complete financial statement of your business. There are many reasons we need to prepare them. Let’s discuss some of the prominent ones below.
For tax purposes:
Year-end accounts are crucial for filing tax returns. They help in calculating the amount of tax you owe.
For business management:
If you want to see whether your business is profitable or growing, the year-end account will help you get such insights.
To get investments and loans:
Investors will want to see the financial statements of your company. Moreover, if you want to apply for a loan, a bank will ask you to show it in order to assess your company’s performance.
Follow This Checklist To Make Your Year-End Accounting A Breeze
- Get the closing schedule ready
A year-end account includes many things. So, you need to work by a schedule. Break down your tasks and plan them by date. Creating a calendar with target dates will help you avoid any critical deadlines and perform all the tasks on a timely basis. - Collect all necessary documents
You would need to collect a variety of documents that include books and credit card systems, inventory counts, previous year tax returns, payroll reports, account information for loans, and more. Make sure you have receipts for all the transactions made. - Reconcile your account
Match up your bank accounts, credit card statements, invoices, receipts, and loan balances with the details in your company’s account book. If you find any inconsistencies, track them down to the root and fix your bookkeeping error.
How Can Stellarwiz Help You With Your Year-End Accounts?
Being one of the prominent finance managers for about five decades, we will bring our expertise and experience to make your year-end accounting an effortless feat. Just provide your account information and let our experts handle everything else.
We have been delivering accurate and affordable year-end accounts services to our global clients, and you could be the next. Just contact us with your business requirements, and we will provide you with a complete consultation on your year-end accounts.
