End of the Year Accounting Tips for Small Businesses
2023-12-17 – BE&O A&B
As 2023 draws to a close, businesses need to take some important steps to ensure 2024 gets off to a smooth start.
One of the most important things for a business to do before closing its books for the year is to clean up the accounts receivable side of its ledger. Ty Shea, the CFO of Circle City Broadcasting, says this is low-hanging fruit that could make a big difference on your bottom line. But it’s important, he says, to not wait too late into the year to try to collect. Many businesses wait until the holiday season to collect, and by then, people and organizations you need to collect from are out of town for extended holiday breaks, which can slow down the process.
Shea also says the end of the year is critical for inventory-based businesses to ensure their numbers are correct and any product orders are prepared for the following year. Incorrect inventory data can throw off normal business operations and set your company behind at the start of a new year.
If you want to hit the ground running in the new year, Shea says now is a good time to start your tax planning strategy for 2024. It is important to get an accurate idea of your estimated tax payments and prepare your company finances so you can pay those taxes when they are due—waiting until the tax deadline could cause issues that run over into the new year.