At the end of each year or beginning of the next, there are tasks to be handled and they involve more than storing away the holiday decorations. There are a number of things to consider.
Documentation for the Accountant
If you have been diligent, all your bookkeeping is in order. If not, now is the time to catch up. Small business taxes are due three months after year end, so it is a good idea to have everything ready for your accountant to complete the T4 andT5s. Be sure to include the last bank and credit card statements and invoices. If the business has made investments, that should be included also.
Bank Statements
Make sure your bank balances agree with your records. Also account for any outstanding checks so that they will reconcile correctly.
Receivables
You should always have an eye to late receivables, but particularly now. If you need to initiate collection or simply write off the amount, include that in your comments to your accountant. You can reclaim HST on the unpaid invoice as a corporate tax deduction.
Payables
Look at the payables with an eye to any appropriate expenses that can reduce your tax bill. Are there any vendors you are not particularly pleased with? Are there additional discounts to be negotiated? It might be a good idea to simply ask for new bids from companies you haven’t worked with before.
Reports
Run a complete set of your reports including balance sheet and income statement. Compare them to previous years to see if there is anything that should be addressed. Think about what changed and why. Did you add a new product line or change your marketing technique? If not, should you?
Inventory
If you work in hard goods, it is a good idea to take inventory and value what is left. If you work in a service, look at where your sales came from. In either event, it is important to take stock of what is selling and what is lagging.
Think
It is a good time to reflect on the past year. Look at the financials and see what has changed and whether it was what you expected. Find out what worked and what may need a tweak or a major overhaul. Were there peak periods that can be evened out or are you happy with the ebb and flow? For the coming year, establish some goals. Write them down. It is found that written objectives are easier to achieve. Just like new year’s resolutions, review them periodically to see if they are still valid and what decisions might be needed to improve. Try to get a perspective on the big picture. Plan for next year’s taxes.
If your to-do list includes finding an accountant, start shopping around. If you don’t currently have someone, don’t hesitate to contact us. One of our professional accountants in Brampton will be happy to discuss the services we offer to small business owners like you.
Contact your Accountants today click on this link —> https://capexcpa.com/contact
- The Capex Team