The new year marks the start of a new chapter for business owners and now is the time to consolidate everything that occurred over the past year. In reality, moving past 2019 is not an easy task.
Moreover, most company accounts are still pre-occupied with clearing & finalizing backlogs from the previous year. Making sure that the year-end financials are not a one-sided job and require the management’s leadership and monitoring to be accurate and timely. Aside from internal reports, compliance to legal statutory reporting should be taken into consideration to avoid penalties, especially from the Seychelles Revenue Commission, Registrar, and other agencies depending on the type and classification of the business.
Here are ways and tips for a worry-free audit & year-end closing report:
1. Proper filing and segregation of documents
Having the right records saves a lot of time and effort especially when the need arises. This is true, especially if authorities like the Seychelles Revenue Commission randomly conducts a tax audit on your business premises, this would benefit when filing your VAT Returns and Business Tax Returns.
Tip: Always keep physical & soft copies as a backup
2. Schedule a physical count of inventory and other assets
Constant monitoring of assets/stock is important especially when the type is business is merchandising and manufacturing.
Tip: For Inventory, invest in a POS system that is also compatible with your account- ing system and maintain a proper asset schedule. Make sure that the assets have matched references with that of the schedule.
3. Proper creditor & debtor communication
A significant amount of unpaid overdue payables does not only cost your reputation but also your credit standing which makes it even more difficult to apply for credit lines in the future. What is worse is when you have not accounted for the receivables in the first place. In such a case it is an outright loss.
Tip: Track your payables and receivables through aging reports so you know that the terms have been properly utilized (payables) and that conversion of receivable to cash is maintained in the shortest time possible (receivables).
4. Schedule Interim Audits
To make sure that the annual audit of financial statements has little to no error, an approach to interim audits can be considered or audited before the end of the fiscal year. Doing so can issue the year-end audited financial statements sooner.
5 Invest in Accounting: Internal Control
Finally, it boils down to the foundation of your business and reflects how the planning began in the first place. Yes, accounting as an investment is non-arguable. Unless you have the time to do the accounting yourself, choosing the right people and firm to partner with is crucial to the growth and consistency of your business in the long-run.
We at CRESCO Accounting believe that correct planning and right execution will always lead you to your vision. It’s a matter of having a correct and consistent mindset. With excellence as one of our key attitude, we make sure that all accounting necessities of our clients are identified and well taken care of.
At the end of the day, we are proud to have been considered as worthy ‘invest- ments’ by our clients.
Find out what you need for your business by talking with us.