The end of the fiscal year is often a synonym for headache to many business owners. It is an extra workload to collect all papers necessary for filing taxes. Whether you do it yourself, or assign the task to an accountant, you just have to make sure you follow each one of the steps mentioned below!

Steps to close your year: Accrual and Cash Accounting

1. Input all your invoices for purchases and sales, authenticate, then synchronize them with your accounting software. 
   
   
2. Create a folder for the year that just finished and add everything that you will need to send to your accountant. 
   
   
3. Finish the banking reconciliation of each of your accounts, scan your statements, and transfer them to the file created in the last step. 
   
   
4. Check the balance of your loans. Scan your statements and transfer them to the folder created in step 2. 
   
   
5. Cross reference the accounts payable with the statements and make corrections accordingly. 
   
   
6. Check accounts receivable and send the account statements to receive the outstanding funds quickly. If you are in cash accounting, it is important to send the list of accounts receivable and invoices to the accountant.
   
   
7. Identity the fees collected in advance. You should be able to find them in the balance sheet. 
   
   
8. Complete your inventory regardless of the material or product used within your company. If the information is not entered on the software, inform your accountant. 
   
   
9. Attach documents for your assets’ purchases. 
   
   
10. If an asset’s market value is maintained, review the values and update them. A sheet with the current market values will be useful when it’s time to renew your insurances. 
    
    
11. Identify and transfer your personal costs to a retirement plan account. 
    
    
12. Prepare, check, and send your reports for GST and QST tax claims. Ensure balances are zero and that everything has been claimed. 
    
    
13. Prepare a backup copy of your accounting software before closing the last month. The accountant will be able to add the adjustments and transfer data from accounts. 
    
    
14. Make a backup copy of your accounting software and add it to your online file to secure your data in case of fire or any major damages.
    
    
15. Close financial activities for the last month, but not for the fiscal year, so that you can add the adjustments to it. 

It is very important to avoid all adjustments for transactions from the year that just ended without telling your accountant.

What to send to your accountant?

• The documents and statements for tax purposes. Statements from agricultural programs, Agricultural finance, your financial institutions (investments, etc.), and your businesses (rebates). 
• Everything needed for the preparation of statements and summaries to be sent to both levels of government for the employees. 
• All information needed to prepare for the RL-31 slips if you rent out any properties.

Start your fiscal year right

• Keep on working on our accounting. It is essential that you don’t wait for the adjustments and financial reports to avoid falling behind. 
• Make sure you tell your accountant whenever you adjust transactions in the previous year. 
• Review the chart of accounts while adding or merging accounts. This will allow for better distribution. 
• Add departments and units in the accounts to better represent each production. 
• Analyze the indicators with a third party. An outside opinion can help you look for advice and have a new perspective. 
• Define goals for the indicators.

A well-prepared year-end closure is the key to starting the next one stress-free. By keeping everything up to date and working closely with your accountant, you ensure that every detail is taken care of. This will allow you to start on solid ground and fully focus on the growth of your business, with peace of mind.