Did You Make Any Of These End Of Year Mistakes?
If you are like many small business owners, you may be struggling with financial documents and accounting paperwork related to your end of year financial processes. Despite the importance of accurately completing these forms in a timely manner, there are several common mistakes that are made by small business owners as they near the end of their financial year.
Are You Prepared?
A recent survey of the members of the Institute of Public Accountants (IPA) reveals that over 40% of small business owners needed more preparation to complete their end of year statements, and 4% were completely unprepared when they met with their accountants. While 56% of small business owners were well prepared, most still needed help from their accountant to tie up loose ends for their end of year paperwork to be complete.
Keeping your records up-to-date, throughout the fiscal year, makes completing your end of the year financials easier on you and your accountant.
Another common mistake that small business owners make is that over 58% wait until the end of the year to contact their accountant.
If you aren’t having regular, consistent contact with your accountant, throughout the fiscal year, you are missing out on the chance to benefit from their business advice. Most accountants have years of experience and education – so why not take advantage of their wisdom throughout the year?
Accountants are not Magicians
Another common mistake that small business owners make is that many fail to provide supporting documents for transactions, or they don’t provide enough detailed information for their accountants to be able to accurately complete their paperwork. While many accountants are wise, they are not magicians, and can’t conjure up supporting documentation. Enact procedures to save receipts and other important documents that back up your figures, so your accountant will be able to produce accurate and lawful financial statements.
Of course, despite your best efforts and preparation, there may be times when your accountant will need additional information to complete your paperwork. Around 84% of small business owners are also tardy in responding to their accountant’s requests for additional information. By responding quickly, you will make the process go faster and more smoothly.
The Importance of Training and Updating Skills
Other common mistakes are related to training issues and technical errors. The IPA survey also found that 65% of small business owners had miscoded at least some of their banking transactions and 46% were not fully utilizing their accounting software. Spend some time to become fully trained in the use of accounting software will help to ensure that miscoding transactions and other errors do not occur.
A Simple Solution
You may be feeling a bit overwhelmed given how common these mistakes are among small business owners, but there is a relatively simple solution. Why not book an appointment with your accountant to find out what you need to do now, and throughout your fiscal year, to make preparing your end of year financials as simple and painless as possible? Whether you just need a bit of direction or find that your financials are completely off course, contact us at the Accounts Studio today for an appointment. One of our seasoned professionals will be happy to talk with you and review your financials and come up with a comprehensive plan to help you get your financials back on track.