The accounting year-end is one of the most busy times of the year for any business, whether it be in the booming markets of Dubai or elsewhere. This is a period when companies should rightly plan their transactions and records, making sure everything is for the upcoming fiscal year. It might be overwhelming, but an accounting year-end checklist could make things easier.
Maintaining a checklist thorough will help businesses ensure that no vital accounting details are missed out on and thus help to resolve outstanding operations efficiently. The top accounting firms, like BMS Auditing, can be highly useful in trying to identify the checklist items of paramount consideration. This guide presents important pointers that will ensure an easy transition to the new year in accounting.
Compilation of Essential Documents
Proper and complete records should be maintained for all the financial transactions of a fiscal year. All relevant documents need to be obtained: bank statements, loan agreements, payroll files, sales/purchase invoices, etc. Keeping them in chronological order makes it easy to retrieve and verify them at the time of closing. This phase ensures that all financial transactions are accounted for and there are no discrepancies in the records.
Assurance of Accuracy of Book-keeping
Integrity of financial records: Every transaction should be accounted for in a year. This eliminates errors and the hustle of reconciling at the end year. It may also be prudent to outsource professional accounting services where the accounts involved are complex especially if they call for special skills. BMS Auditing provides thorough bookkeeping that ensures accuracy and adherence to the prevailing rules and regulations.
Accounting can be done on a monthly or quarterly basis, with accounting reviews done either monthly, quarterly or annually (before the financial or external audit).
We will identify any discrepancies in your financial records and make the relevant corrections, thereby ensuring that your financial records are error-free for a smooth transition into the new financial year.
Preparation of Key Financial Statements
It produces accurate and full reports that can give invaluable insight into an organization's financial health and performance in balance sheets, income statements, and cash flow statements. Reports, like financial statements, do not only cater to internal stakeholders; they also provide a clear view of the business operations to the external stakeholders, especially creditors and investors. There is a great need to have accurate financial statements in making informed business decisions and planning for future growth.
Conduct of Inventory Valuation
For proper inventory valuation, a physical inventory count has to be done, and the results have to be carefully compared with the existing inventory records. With such a comparison, all necessary adjustments could be made to ensure that the current inventory valuation is correct. This information provides a very critical basis for budgeting in the next fiscal year. Good inventory valuation will enable the company to know the actual level of the stock on hand and to make effective purchasing decisions.
Accounts Payable and Receivable Analysis
Maintaining control over financial commitments involves thoroughly analyzing outstanding accounts payable and receivable. Verifying the timely settlement of all payables helps avoid late payment penalties. Implementing a robust follow-up system ensures the collection of outstanding receivables, maximizing cash flow. Effective management of accounts payable and receivable is essential for maintaining liquidity and financial stability.
Tax Planning Strategies Implementation
Managing one's way through a changing tax landscape is proactive. Understanding Value Added Tax and corporate tax requirements of the United Arab Emirates is critical. Reviewing tax liabilities and seeking out all legitimate deductions can reduce overall taxes. BMS Auditing offers professional tax planning services to guide clients in optimizing their tax positions while adhering to all tax legislation.
Set Strategic Business Targets
Setting clear, measurable strategic goals for an organization using insights obtained from the year-end financial statement is important. Such goals thus act to guide future endeavors and, as such, make it easy to evaluate performance and sustainably grow the business. Reaching strategic goals by basing the strategies on accurate financial data makes a business focused on its long-term objectives and drives growth.
This detailed checklist will enable organizations to have a smooth and efficient year-end accounting close. Thereafter, it paves the way into successfully transitioning into the new fiscal year and allows the business to remain focused on key initiatives to execute its long-term objectives.
Streamlining Year-End Accounting with BMS Auditing
This is the most critical phase of the year for any accounting process: very intricate with minute details and strategic planning. A comprehensive checklist will help ensure a smooth financial close process, enabling transparency, information for correct decisions, and success in the future. Top accounting firms like BMS Auditing are always there to help an entity at each step, including documentation, financial statement generation, inventory valuation, and analysis of accounts payable and receivables. They also plan tax strategies and formulate business strategic objectives, minimize errors, and ensure that the laws set are complied with. Therefore, a partnership with BMS Auditing provides a smooth transition into the new fiscal year and lays a strong base for success in the future.
