In every financial yearend, we are often asked a number of queries from our clients. And, most of them are worried about how to close their year-end book. Well, this is true that closing the year-end book successfully is a daunting task for the companies until and unless they take help from professional accountant in Santa Monica. If you want to do it yourself, you can follow a few tips. Below are discussed top 5 tips that you can follow to close your year-end book.
1. Make a checklist:
Based on the needs and the requirements, every company should keep a monthly, quarterly, weekly or annual checklist. The dedicated person has to make the schedules entries to complete the checklist in an error-free way. Completing work in a timely manner would help you to keep your closing process consistent and accurate.
2. Reconcile your bank accounts:
In order to investigate whether there is an outstanding check for over 2 to 4 weeks, you should reconcile your bank account. You can capture your cash activity accurately by reconciling your bank account in a proper way. If you reconcile your account on a regular basis, you will be able to investigate if there is any difference in your company account.
3. Conduct an inventory count:
The next important thing that you need to follow is to conduct the inventory count if you have any. The professional accountant Santa Monica can help you to document the counting process and keep the records of the count.
4. Update your cap table:
If you are among those, who keep their books on an accrual basis and adhere to the US GAAP, you should book non-cash entries and update your book. We find maximum errors are non-cash related, like, stock option expense, stock compensation, discounted debt etc. Don’t forget to include them in your checklist.
5. Analytics:
The easiest way to find errors before they occur is analytics. Look at your income statement and balance sheet against what you expect and investigate if there are any anomalies at a more granular level. By comparing results to prior period numbers, you can measure your company performance in comparison to previous benchmarks.
By following the above-discussed tips, you can close your year-end book successfully in an error-free way. However, the accountant services in Santa Monica can help you to close your year-end book in the most efficient way possible.