Giddh, May 22, 2013

Things to keep in mind before closing 2013 financial books

The world did not end in 2012, and so the accounting and accounts book still continues. And as long it is in continuation, it becomes necessary to take care of the below mentioned issues and solve them before closing this financial year’s books of accounts.

1. Get over all your invoice issues

Invoicing becomes a very important part if the business records are to be maintained in a proper manner. It is therefore necessary that one should get over all the invoicing issues before closing the financial books of accounts. This is because a single slip in the count of invoices can cause serious blunder in the business.

2. Clear your bad debts

Writing off the bad debts is also necessary because unless the bad debts are not written off, the financial books cannot be closed.

3. Handle your prepaid and outstanding expenses

It has been largely observed that most of the mishaps are caused in the business solely because there isn’t an exact record of the sum total of income and expenses of the current financial year. Hence, at the very least, if the prepaid and outstanding expenses are handled properly, then the mishaps can be abridged to a large extent.

4. Take care of suppliers — and their bills as well

It is not only essential to take care of the suppliers, but it is also essential to manage their bills as well so that the existing suppliers remain satisfied and are always in proper terms with the business.

5. Compare and analyse your financial statements before they get out of control

Getting acquainted with comparative and common-size statements is sometimes just not enough. Comparison and on-time analysis of such statements is therefore significant and of much use to the trade.

If the above things are hence kept in mind before closing 2013 financial books, things will definitely not be complicated for your business.