It is tax season – time to get your financial statements cleaned-up, so that you can forward them to your accountant.
First, make sure all of your reconciliations have been completed. Your December bank accounts should have already be reconciled by January 25th.
Run “Verify Data Integrity”. This should correct most hidden or imbalance errors.
Then run a G/L Reconciliation report, and correct any errors found on here.
Your accountant can offer you great advise, but you are the person with the most knowledge of your own business. Prepare and review draft financial statements. Look for:
- Items posted in the wrong G/L accounts.
- Multiple accounts of a similar nature - consolidate into one?
- Are there negative expense or income accounts?
- Missing any purchases made with petty cash or credit card?
Now that everything has been entered, and you have confirmed your ledgers have no errors, you can run your HST report and remit it or post it as a payable.
You are now ready to forward your financials to your accountant.
You can close out any open months, up to and including November. Now is also a good time to archive matters that have been completed.
While your accountant is working, you have time to take a second look at your financials - Next week’s topic.
As always, I invite your comments and suggestions for future post topics.