2017 is going to end soon in couple of months and Year-End bookkeeping is the task in hand for most business owners in the United states. Year end is the time for critical works to be handled like including sending customer statements, reconciling bank accounts, preparing financial documents, filing taxes, and many others. End of the year adjustments accounting are journal entries made to the accounts of a business prior to the preparation and distribution of the financial statements.
Need for Adjustments:
- Ensuring that Financial Statements prepared after the year end procedures is accurate to every single data
- detecting any errors and prevent fraud.
- To make sure that all the items of income and expenditure are recorded on accrual basis.
- Correct evaluation of the inventory
With day to day operations taking the right amount of time and resources of the small businesses, accounting and bookkeeping becomes a neglected task. Outsourced bookkeeping takes care of every bookkeeping needs with ease while streamlining resources and bringing efficiency. Outsourced Bookkeeping delivers a diverse range of bookkeeping and accounting services for its clients during the year, and a complete review is done at year end so that the clients work is fully compliant with different laws. Bookkeeping services for small business is managed effectively by us.
Key Bookkeeping adjustments done year-end:
- Physical Reconciliation
It involves the pretty physical check of every tangible items like cash/petty cash with the cash book, physical verification of the inventory (of raw material, components, finished goods, goods for resale etc.) with the records kept.
- Miscellaneous Reconciliation
It covers diverse acts like the bank reconciliations, reconciliation of suppliers’ accounts with the statements sent by them and sending out statements of accounts to customers. Reconciling customers’ and suppliers’ accounts is vital and much needed. Any unusual account transaction must be investigated for it
- Ledger Scrutiny
A constant scrutiny/analysis of ledger accounts of the nominal ledger (or general ledger) for frauds/discrepancy. The analysis leads to a good understanding of finance and transactions done for a year or so. Any wrong or extra payment can be found out easily.
- Closure of Revenue Accounts
Once, the adjustment entries are passed, all revenue accounts are ceased for the year and the balances transferred to the Income Statement (Statement of Profit or Loss) for detailed analysis.
- Other key entries to be taken
- Closing inventory
- Amounts to be written off (e.g. Irrecoverable debt)
- Deferred revenue expenditure
Taking all the above points into consideration, bookkeeping business services offered by Outsource Bookkeeping can alleviate the problems with an ease. Every account is scrutinized by us with care while adjustment gets taken into consideration.