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6 Ways to Ensure Your Business is Prepared for the End of the Financial Year   

By: John Moran

 

Young man and woman going through paperwork together in their restaurant. Small family restaurant owners discussing finance calculating bills and expenses of their small business.

The end of the financial year is always a busy time for business. Tax returns need to be submitted, budgets need to be finalized, and financial statements need to be reviewed.  

However, the end of the financial year is also a time when businesses are more vulnerable than usual to mistakes and errors. To avoid this, you need to be prepared. Here is how you can ensure that your business is prepared for the end of the financial year. 

Generate Your Invoices in Good Time for Payments 

If a business is not generating invoices as soon as possible, customers may miss out on receiving payment for their orders. This could lead to financial loss if the business works with “short-term” accounts.  

Companies must ensure that invoicing and order-taking processes are done on a timely basis so that customers do not have to wait too long for payment. To save time on this, you can use a reputable invoice generator 

Have a Sound Financial Plan in Place 

Businesses without a sound financial plan are more likely to make mistakes. The most important thing is that a business needs to set targets for the coming year and budget accordingly.  

This can be done using various tools such as spreadsheets, budgets and calculators while taking into account possible changes in circumstances. 

Ensure That You Have Adequate Financial Staff in Place 

In business, you cannot do it all. That is why it is vital to have adequate staff in place so that you can focus on daily operations rather than worrying about finances and taxes.  

Having adequate people on your team who understand your business’s operations is crucial. They will help you out when necessary or delegate tasks appropriately. 

Train Your Employees 

Ensure that employees receive regular training to help them avoid potential fraud issues when dealing with customers at the front desk and on other points of contact. With employee training, workers will be able to learn from past mistakes by analyzing fraud trends and implementing new procedures accordingly.  

Employees who do not receive proper training when working at a company risk receiving complaints from clients or, worse yet, committing fraud themselves. All this can end up costing both the company and the employee. 

Make Sure Your Records and Data are Accurate 

Businesses have to be meticulous when it comes to record-keeping. This enables them to make the most use of their finances when needed. It is important to remember that financial records are sometimes the only thing between survival and disaster. It ensures that your business runs effectively 

Do Not Skip Tax Filing Deadlines 

Filing taxes on time is crucial if you want them to benefit you. For example, certain expenses can be claimed if you file your taxes before the deadline. Unfortunately, skipping these deadlines will also mean a higher bill at the end of the year, which can affect your budget significantly. 

Conclusion 

As another financial year ends, businesses need to ensure they have everything in place to meet the challenges of the next 12 months. With so much preparation required, it’s easy for smaller businesses to overlook some of the essential tasks that must be completed before starting a new accounting period.  

All the above aspects ensure that you are ready for the year.  

Published: August 17, 2022
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