Wrapping Up the Year Right: 7 Helpful Tips for Proper Year End Planning for Your Business 

As this year ends, it’s important to start planning for the year ahead.  

Year end planning can help ensure that your business is on track financially and ready to take advantage of opportunities as they come up.  

By following these tips and considerations, you can ensure that your business is in the best financial shape possible as year-end approaches. 

7 Helpful Year End Planning Tips 

Year-end planning is an important task that should not be overlooked.  

Here are some key tips for year end planning that can help you keep your business finances in order. 

1. Give Yourself Enough Time

Year End 

One of the most important year-end tasks is to close, review, and deliver your year-end books to your accountant in a timely manner. Ideally, this is completed within 30 days of year-end to ensure that all financial information is accurately recorded and accounted for. 

During this process, you should make sure that all year-end transactions are entered into your accounting system and that any year-end adjustments are made before sending your information to your accountant.  

Month End 

In addition to year-end books, it’s also important to close and review your month-end books within 15 days of each month-end. This helps ensure that any changes or adjustments that need to be made are done promptly and can help avoid costly year-end surprises.  

2. Review the Books Every Month

Another proactive year-end tip is to review your books every month. This can help you track how your business is performing financially and identify any potential issues before they become more serious.  

Each month-end review should include an analysis of: 

• Sales 
• Accounts receivable  
• Accounts payable 
• Shareholder loan accounts 
• Expense amounts and categories  

Regularly reviewing your books will also give you a better idea of where you stand year-to-date, so that you can adjust as needed. 

For a detailed breakdown of what you should look at every month, see our blog post It’s the most wonderful time of the year! A business owner’s guide to reviewing their books at yearend.

3. Stick to Budgets

Budgeting is a key part of year end planning. A well-defined budget can help you track your expenses and plan for upcoming costs.  

Taking the time to compare your actual results to your budget every month can also help determine where you may need to adjust or modify spending habits. 

4. Review Cash Flow

Reviewing your cash flow is another vital year end planning task. Keeping an eye on how much money is coming in and going out of your business can help you make smart financial decisions.  

Analyzing your cash flow can also help you identify cost-saving opportunities and develop strategies for increasing revenue. 

5. Know Your Deadlines

As a business owner, it’s important to know when key year-end deadlines are approaching.  

Certain dates must complete year-end tax forms and payments, so make sure you know them in advance to avoid unnecessary penalties or late fees. We recommend compiling dates and action items in a web calendar so that you can stay organized and get notified accordingly. Check out our blog here called Canadian Deadlines, Tips and Tricks 

6. Implement Accounting & Bookkeeping Software

Accounting software is a valuable tool for businesses of all sizes. It can help make year end planning easier by streamlining the process and reducing the hours of manual work that would otherwise be required.  

Most accounting software programs offer digital access to important documents, including financial records, invoices, and receipts, so that businesses no longer need to physically manage files and check paper copies of all their data. Furthermore, it enables users to generate reports like income statements or balance sheets at year-end in under minutes, which can be compared against other periods and reviewed for accuracy more quickly than ever before.  

With the help of accounting software, businesses can not only boost efficiency but also have the advantage of very comprehensive record-keeping – something that could simplify future audits and help create more reliable forecasting. 

Looking for a virtual accounting and bookkeeping system to make year end planning a breeze? Get started with GURU by Achen Henderson!  

7. Strategize with an Accountant

Finally, working with a qualified accountant before and during year end planning is extremely valuable.  

A qualified accountant can provide valuable insight into your business’ financial health and help you develop strategies for growth. They can also answer any questions or concerns that you may have about year endyearend planning and provide guidance on how best to optimize your finances in the year ahead.  

One example of this is remuneration planning, which you can read about in our article here. 

Cheers to Another Year… End! 

Year end planning is essential for ensuring that your business runs smoothly and efficiently. Taking the time to review your budget, analyze cash flow, utilizing technology, and working with a reputable accountant can help you prepare for the year ahead.  

With these year-end tips in mind, your year end planning efforts will be simple and successful! 

Want to work with experts to ensure seamless year end planning? Reach out now!