Accounting and the holiday season
October 08, 2015

While there is no doubt that your business is busy during the holidays, you can't spend all of your time thinking about customers. Some of the time remaining in the year should be devoted to your books. As Christmas and the new year draw closer businesses of all sizes should consider their year-end accounting situation. 

Prepare for the end of the year
According to Small Business BC, a Canadian small business advocacy site, all businesses need to have a strong understanding of their finances. Every business needs to create end-of-the-year reports that are up to date. Books should be reviewed and analyzed for accuracy. Businesses should make it clear to their bookkeeper or accountant that end-of-the-year reporting is of the utmost importance. Once the proper reports are created, it will be easier to update them as needed as the end of the year winds down.

High-quality accounting software makes preparing end-of-the-year reports much easier. The data is more easily updated and tracked. If a business doesn't employ a bookkeeper or accountant, and the CEO or another high level executive is handling the finances, accounting software is a must because it automates and simplifies the process. Also, with proper accounting software, business owners can see reports remotely from their mobile device, ensuring they always know what is happening.

Consult your tax adviser
Businesses shouldn't wait until the end of the year to reach out to their tax advisor, according to Infinit Accounting, a business accounting firm. Once the holidays hit you're going to be extremely busy, but it's important to still make time for the person or company helping you with your year-end taxes. Talk with them about the state of your books and find out what they need you to do before the end of the year arrives.

Additionally, find out if there are any accounting resources they recommend you to use. As your tax advisor, they should know what accounting systems you already have in place and can suggest new resources you may not have thought of.

When you reach out to your tax advisor ask about deductions and tax deferments available to your business. While not all business can take significant advantage of these strategies, some businesses find that they make the end-of-the-year taxes much easier. Your professional tax advisor can tell you what your business is qualified to use and what it isn't.

Nexus: G-WEBCD3