Do you need to prepare the accounting closing of your company and don't know where to start? Do you want to know an estimate of the taxes you are going to pay this year?
Do not hurry! You can still correctly prepare the accounting closing of your company!
In this post we will see how to do it, revealing 5 steps for tax planning for the accounting closing.
The first step to creating an effective accounting closing is to take planning into account. You must previously plan each of the actions you are going to carry out and verify that you do not forget any premise.
The organization of processes is essential in the planning and management of our company's accounting year. We must take into account that the accounting closing is a uniform, periodic and comparable process to the previous year. Therefore, we must plan our income and expenses according to the corresponding periods.
When planning our accounting year, it is essential to have a clear organization. For example, do it by dates ordered each month. With this we are developing a periodic analysis which is about assigning to each of the years those expenses and/or income (profits) that correspond to it. It is a practical way to keep your exercise up to date and without losses.
“If the accounting is correctly carried out in a timely manner, we will be able to analyze the data to make strategic decisions.”
I propose you a check list so that you follow the letter and achieve a practical accounting closing in a timely manner. And if the accounting of your company's financial year is correctly carried out, we will be able to obtain relevant data to analyze and make strategic decisions about the management financial.
- Check the trial balance of sums and balances to ensure that accounting entries are not out of balance. Make sure that there have not been any errors in the balance sheet. This record guarantees that all financial years produced during the year have been carried out correctly and offers a view of the financial situation.
- Reclassify long- and short-term debts to check if they coincide with the calendar year. Make the corresponding adjustments to create the amortization tables. Are you clear about the installments to be paid and what part corresponds to capital and interest amortizations? You must keep in mind to count as short-term those debts that must be paid for the next year.
- Corrects the result of the exercise based on the merchandise consumed with the variation in inventories. Does the balance of the accounts reflect the value of the merchandise at the accounting closing? Do you have more stock than necessary?
- Confirm that your inventory is classified with the transformation status to know what property inventory you have.
- Check the classification of fixed assets items. Check the acquisition value, including the purchase price, financial expenses and assumed obligations.
- Post expenses in the corresponding natural accounts and pay attention to projects that have not achieved positive results.
- Map risks with correct provisions to record expected contingencies for depreciation of assets and risks.
- Distinguish between provisions and debts. Record a provision for risks and expenses when it is a certain obligation that must be incurred.
“The correct preparation of the accounting year will allow you to scale your project and it will adapt to the current regulations collected in the last year”
Tax planning is aimed at reducing the tax burden within current legislation, because correct tax planning can lawfully minimize the tax cost. In short, you must keep in mind that the correct preparation of the accounting year will allow you to scale your project and it will adapt to the current regulations collected in the last year.
Fountain: SAGE
