Year End Accounts
Year end accounts offer invaluable financial information about your company and are especially useful if, such as at Christmas time, you want to apply for a loan or raise finance. Your year-end accounts will record how much you have made in profit, how much you owe to the bank and your tax details. Your account will be prepared according to accounting standards and will ensure you are claiming all that you’re eligible to. Accounts can be simple and straightforward or quite complex, depending on how much detail you need to report. They should be filed as soon as possible after the year end and records kept for tax purposes.
There are some important considerations to make before beginning the year end accounts procedure. Firstly, remember that companies don’t often charge interest on their loans or advances – this will usually come later in the year. Most accounting procedures will incur charges in the form of interest and penalties on overdue repayments or late filing of bills. These will normally be included in the company’s general ledger and payments will be made by checks, debit cards or credit cards. You will need to decide whether to include penalty charges in your year-end accounts. It may be worth it to pay a bit more in interest to get this arrangement over with sooner rather than later.
Before beginning work on your company year end accounts you’ll need to arrange to have your books and documents examined by an accountant. The most common way that this happens is through an unscheduled visit from the accountant general or a partner. If you’ve arranged to have your accountant look over your books at home, it’s worth making sure that they are in a safe place. Copies can then be sent by courier to your accountant so they can get started on your year end accounts as soon as possible. If you’ve arranged to have them come to your place of business for an appointment, it might still be worth it to get copies delivered, just in case.
Once the accountant has had their look at your year end accounts, they will give you a detailed report of all matters contained within your books and documents. This includes everything from your balance sheet to your income statement and all relevant tax data. The accountant will also provide you with their opinion on the financial year end positions. This is where it’s possible to find out whether you need to make any adjustments to your financial year end positions. They are obliged to advise you accordingly but you’ll often find that they will provide this service even after the end of the financial year. For some companies, this means that they have not actually got all of the year’s records entered into their books yet!
Once your year end accounts have been prepared by the accountant, they will be ready to be presented to the CPA. The accountant will take all of your information and put it before the CPA. The accountant will then inform them of any unusual findings that they have come across. They may have come across a discrepancy or an error that needs to be filled in. If this is the case, the accountant will fill in the records as requested by the CPA will then give his opinion.
The main thing to remember when preparing year end accounts is to make sure that all of your financial records have been correctly entered into the books. This will mean that you will have a correct picture of what your company owes to the government and all of the other individuals and companies that may owe money to you. The company tax return provides an accurate and concise snapshot of your financial situation at the end of the financial year.