Annual financial statements should not be a spring project. Most of the work is done in autumn and winter: balances are reconciled with suppliers and customers, doubtful debts are reviewed and the stocktake is planned.
Five steps
1. Reconciling balances. Send reconciliation statements to suppliers and customers. The earlier you find discrepancies, the easier they are to explain.
2. Stocktake. It is not a formality — it is the only way to find out whether the accounting data matches what is actually in the warehouse and on the balance sheet.
3. Reviewing fixed assets. Check whether all assets are still in use and whether any need to be written off or revalued.
4. Provisions and accrued expenses. Assess the holiday reserve, warranty obligations and invoices not yet received for last year’s services.
5. Calculating taxes. Corporate income tax and possible reliefs can only be calculated once the data from the first four steps is in order.
When to do it
If the first three steps are done by the end of December, only the numbers are left for January, not the search. The statements must be approved within four months of the end of the financial year and filed with the Centre of Registers — with preparation, it is not a rush job.
Want this year to be different? We will draw up a plan and divide the tasks in advance.
