As we get closer to the end of the fiscal year, accounting is something that should be top of mind for business owners (even if you wish it wasn’t!). Keeping organized books all year long is important when you plan your year-end accounting.
However, even the most organized business owners can feel overwhelmed at the end of the year. At Sawyer, our goal is to help children’s activity business owners spend less time on administrative tasks so they can spend more time doing what they love. As we finish out the fiscal year, use this guide to prepare your business with a year-end account checklist template to make your life easier.
- The end of the fiscal year: How to be prepared
- Year-end accounting checklist
- Year-end accounting checklist template
The end of the fiscal year: How to be prepared
Preparing for the end of the fiscal year does not need to be stressful. As long as you are organized and willing to put in the time, then you should feel comfortable with your year-end accounting. The best part? Once you are done, you can focus on all of the holiday fun!
Use these tips to prepare yourself for the end of the fiscal year
- Start early. One of the most important ways you can set yourself up for success at the end of the year is by preparing early. While strong bookkeeping throughout the year will make the end of your year less stressful, you should really start thinking about your year-end accounting in November.
- Remember late in the year holidays. Checks for bank holidays need to go out to your team before the end of the year. Any time off around Christmas must be accounted for before the next year begins!
- Gather all of your paperwork. Don’t wait until the last minute to get everything together. You will need your balance sheet, income statements, cash flow statements, and of course, your 2022 budget. Analyzing these documents will help you determine what you need for the end of the year and how you can build your 2023 business budget.
- Reconcile your accounts. Before you do a deep dive, take a first glance to make sure everything looks right. Are there any outstanding bills or invoices? As you prepare for the end of the fiscal year, reconciling these items will speed up the process. Ideally, you can receive automatic payments from your customers with a class management software like Sawyer to avoid having to chase down payments at the end of the year.
- Start thinking about next year. While you review your finances from this year, take the time to look for trends, make projections, and set your business’ goals for next year. If you run a summer camp and make more income during that season, maybe you can plan school break camps during the year to increase your revenue next year.
Year-end accounting checklist
What do you actually need to get done before the end of the fiscal year? A checklist can help keep you organized so that you get everything done before the clock strikes midnight on a new year.
- Make sure invoices are paid. If you have any uncreated or unpaid invoices, you cannot wait any longer. Invoices from customers as well as vendors must be reconciled before you can move forward with closing the books. Income and expenses need to be correct!
- Record expenses. If you have fallen behind on your expenses and bookkeeping, you need to correct that before the end of the fiscal year. It helps if you use QuickBooks or another accounting software for your bookkeeping. Sawyer has direct integrations with QuickBooks and Stripe so your expenses and income should be easy to track!
- Update your mileage log. If you use your car for business, you can track your mileage and write them off as a tax deduction. Just remember that you can only track the miles you drive for work and not for your personal life. Separating your business and personal expenses and miles is very important for small business owners.
- Pay bills. Just like you need to collect open payments from invoices, you also need to pay any open bills. Not only vendors and contractors, but also your fixed expenses like rent and utilities should all be squared away before year-end.
- Decide on employee bonuses. Before you can close the books for the year, you need to determine if you are offering employee bonuses and providing employee holiday gifts. You need to write these numbers down and set these costs aside for withholding taxes.
- Verify employee information. As you get everything together for your year-end accounting, you can start preparing for tax season, too. Reach out to your employees, especially if you have seasonal employees, to make sure you have the accurate contact information to send them their W-2s and 1099s.
- Run and review reports. You should be going through your reports weekly to keep your business running smoothly throughout the year (real-time reporting helps with this!). However, running and reviewing your reports is a must at the end of the year, too. Most importantly, analyze your profit and loss reports, income statements, and balance sheets.
- Create a file or folder. Organization is key! Once you have gathered everything you need from this year, create a folder or file. You can come back to this folder during tax season or even in future years to look back on growth and more.
- Close your books. Before the end of the year, but after you are sure you have finished taking bookings for your classes, you need to actually close your books. Accounting software like QuickBooks will make this easy. You lock your account for the year so that it cannot be edited anymore except by admins and your accountant.
Year-end accounting checklist template
Want a handy downloadable year-end accounting checklist template that you can use for your own financing this year? We’ve got you covered!
Get your year-end accounting checklist template
Looking for more advice on year-end accounting or just running your children’s activity business? Sawyer is the best class registration and management software for children’s activity providers. Plus, we offer lots of free resources for support as well!
With our suite of tools, like custom forms to record allergies and t-shirt sizes, flexible payment options like gift cards and installment plans, and seamless scheduling and registration on any device, Sawyer saves business owners 28 hours per month. If you are ready to spend less time on admin and more time doing more of what you love, see how Sawyer can help with a free trial or demo.