My Year End is Here! What Do I Need To Do?!

At Bridge City Bookkeeping we believe that helping people is our number one priority!

It’s important that even small businesses should invest in a registered, licensed auditor or accounting firm to complete year-end financial statements. If you don’t have one, or unsure about which firm to choose; ask around!  Who are other trades using?  Ask family, friends or mentors who they use.  It's not a secret and it's one the most important parts of running your business.  A smart business owner keeps themselves in the loop when it comes to their money and financial position. 

Items that you will need for your year-end preparation include:

-If you are using a software package save a copy of your accounting file note the software package used along with the specific version and password if applicable

-a paper copy of your general ledger

-completed bank reconciliations

-invoices issued to clients

-cheque stubs

-supporting documentation for business related expenses

-bank statements including cancelled cheques

-deposit books for the year plus the month after year end

-A/R listing -Notes as to the portion that is likely not collectible (by customer).

-A/P listing – supplier amounts payable

-New asset purchases - Supporting documentation including any leasing arrangements: vehicles, equipment, furniture, computer, leasehold improvements etc.

-New financing arrangements - Mortgage statements and loan agreements.

-Personal line of credit statements used for business.

-GST returns as filed and any notices received

-PST returns as filed and any notices received

-Canada Revenue Agency (Federal Corporation) tax statements, notices and assessments received during the year

-Saskatchewan Finance (Provincial Corporation) tax statements, notices and assessments received during the year

-Employee source deductions – all forms for remittances made during the fiscal year as well as the month following the year-end date.

-Investment statements - certificates for short term deposits, trading summaries and account statements if applicable

-Home office expenses - Provide on an annual basis the following: rent paid or mortgage statement, utilities, home insurance, property taxes, repairs and maintenance expenses. (if home office costs apply) Total area of house and area used for business. List of significant once a year cost items such as insurance, maintenance contracts etc. and the annual renewal dates and invoices. List amounts of any deposits such as last months’ rent for premises.

-Details of loans received during the year.

-Details of shareholder loan and salary/draw payments or loans for the year.

-If you do not do your own bookkeeping, you should choose a company that will work with your auditing firm and help you complete your year-end. And remember! It’s ok for you to ask questions! It’s your business and you are responsible for the maintenance of your financial records.

Tips to make year-end easier and stress free:

Don’t wait until the last minute to get everything together. Monthly organizing can save you a lot of time and money.

Make copies of asset invoices and keep them in a binder. Make tabs for each year so any new assets can be verified quickly.

Keep it simple! Keep a copy of your general ledger, audited journal entries, financial statements and tax returns in a binder labelled with the fiscal year.

Hopefully these tips will help make your year end easier! 

And remember, if you need help Bridge City Bookkeeping has a Year End Audit Preparation section of our business and we are here to help you!  We can be reached through our website at www.bridgecitybookkeeping.ca