It’s a good idea to perform certain year-end tasks with your financial records at the end of the calendar year. Some of the tasks are just good financial housekeeping, while others are required by the government.
Fortunately, you can spread the tasks over the period from December to February.
The following sections outline information about the tasks to perform in each month, as well as employee-related tasks for the end of the year.
December is a good time to tie up loose ends for the closing year, to make profit distributions, and to start preparing for tax time with your accountant.
Create and send customer statements
The end of the year is a good time to remind your customers of any outstanding balances that they owe to you, or to send them a statement of their activity throughout the year.
It’s not mandatory, but you can choose to distribute profits (also known as Retained Earnings) to the owners or partners at the end of the year.
Prepare for taxes
Many small business owners use an accountant, especially at tax time.
If you haven’t already done so, now is a good time to give your accountant access to your QuickBooks Online company so they can review your financial reports and other data, and even make any necessary changes before the end of the year.
January is when you should reconcile your accounts, prepare summary reports, and (optionally) close your books for the previous calendar year.
If you haven’t already done so, it’s also a good time to get in touch with your accountant and talk about preparing for tax time.
Reconcile your accounts
At the end of the year, and when you prepare your taxes, you’ll want to have the most up-to-date and correct information in your financial reports. Reconciling can help ensure that.
When you reconcile an account, you compare the beginning balance and transactions listed in your QuickBooks Online company file with your monthly bank or credit card statements to make sure they match. Reconciling is like balancing a chequebook, as you review your bank statement to make sure it matches the amounts you recorded in your cheque register.
The process helps to ensure that important financial reports, like your Balance Sheet, are accurate.
Reconciling can seem intimidating if you haven’t done it before, or if you haven’t done it for a while if we can be of assistance please get in touch
Run Balance Sheet and Profit and Loss reports
The start of the new year is the natural time to run reports and evaluate how your business performed over the previous year.
Running reports is also an essential part of preparing for taxes.
The two most important reports that you and your accountant will need are the Balance Sheet and Profit and Loss reports, and it’s a good idea to run these reports at the beginning of the year. Make sure the date range in the Transaction Date field for these reports covers the year you’re reporting on.
The bulk of your year-end work should be complete by February, with just a task or two to finish up and prepare for taxes.
Prepare for taxes
An accountant is a valuable resource, especially at tax time. If you don’t have one or are looking for a change give us a call
If you have employees (not independent consultants or contractors), there are additional tasks you should complete at the end of the year, along with additional government forms to file and deadlines to meet.
If you use standard QuickBooks Online Payroll, you can access information about year-end payroll tasks in QuickBooks Online by selecting Employees from the left menu, and then selecting Payroll year-end guide.
If you use a different payroll provider, it’s important that you consult them for items and forms to complete for the end of the year.
Review these important direct deposit cut-off dates as you plan your year-end payroll work.
Approve payroll by
December 24, 2021
December 22, 2021
December 25, 2021
N/A on holiday
December 26, 2021
N/A on holiday
December 27, 2021
N/A on holiday
December 28, 2021
N/A on holiday
December 29, 2021
December 23, 2021
December 30, 2021
December 24, 2021
December 31, 2021
December 29, 2021
January 1, 2022
N/A on holiday
January 3, 2022
N/A on holiday
January 4, 2022
December 30, 2021
January 5, 2022
December 31, 2021
Other dates to remember
As you work through your year-end plan, don’t forget these important dates for your T4 and RL-1 forms.
January 4, 2022- Electronic filing options are available online with Canada Revenue Agency and Revenu Québec.
February 28, 2022- The deadline to export your T4 file and submit T4s and RL-1s with CRA and Revenue Quebec. You also must provide your employees a copy for their own records, which they use to do their personal income tax.
If you do not keep track of exactly how much cash you’re making, you have no idea whether your choices and strategies are effective or not. And if you do not track these things you won’t have any idea how to fix issues that arise.
When picking strategies, you want to ensure you are as effective as possible. To do so, it is advisable for you to review your progress and adjust and/or revise your strategy, no less than on a monthly basis. If you are tracking often you will always ensure you keep on top of small troubles so they do not escalate to larger issues.
Unfortunately no business idea is truly unique anymore, which means that from time to time you will experience a reduction in profits. When this inevitably happens the best strategy is to revisit your marketing and advertising strategies, review your prices and evaluate your cost of goods margins.
If you do not keep track of how much cash you are making, you truly won’t have any idea of how profitable and sustainable your company is and will be in the future. If you do not know this you cannot hope to be in business for a long time. The simplest strategy for keeping yourself in business is to monitor your cashflow and profits over time. If you are not doing this you will not be prepared to weather hard drops in the market.
Task based budgeting is not brand-new. As early as 1990, some companies in nations like the USA as well as Australia executed this brand-new budgeting program to change the recognized as well as old approach of budgeting, the “line thing budgeting.”
Task based budgeting is a technique of budgeting in which tasks that sustain
expenses in each feature of a company are developed as well as connections are specified in between tasks. This details is after that utilized to choose just how much source must be designated to every task.
To put it simply, task based budgeting is budgeting, preparation as well as regulating by tasks as opposed to price components of a company. For individuals of this budgeting program, they declare that it involves everybody in considering just how they can much better develop worth for company. It creates a versatile spending plan based upon task workload that is not as stiff as journal of the line product budgeting that pre-identifies prices even though that expense might not serve in any way.
Activity-based budgeting is just arranged sound judgment. A lot more especially, task based budgeting is a method for improving the precision of monetary projections as well as boosting administration understanding. When automated, task based budgeting can quickly as well as precisely generate monetary strategies and also versions based upon differing degrees of quantity presumptions.
Task based budgeting likewise can remove a lot of the laborious operate in standard budgeting. Task based budgeting examines the solutions or items to be created, what tasks are called for to generate those services or products, as well as what sources require to be allocated to do those tasks. Put simply, task based budgeting is the opposite of the activity-based setting you back procedure to create monetary strategies as well as budget plans.
With the introduction of effective and also low-cost data source systems, task based budgeting is enabling companies to decrease expenses, much better use sources, and also attain tactical purposes.
The Australian National Audit Office has actually recognized the benefits of task based budgeting:
– Output expenses are sustained by a routine of set you back tasks – Opportunities to take a look at job procedures – Identifies non value-adding tasks that can be removed – Basis of an efficiency dimension system as well as straight web link in between calculated
objectives as well as functional truths – Enables expense accounts to be taken care of – Accurate setting you back information for functional administration – Costs are clear, workable as well as easy to understand
– Activity meaning might come to be as well thorough as well as the version might come to be tough and also intricate to keep – Underestimation of the job of gathering task motorist information – Implementation might be thought about a monetary administration “trend” and also there wants dedication from functional supervisors
Task Based Budgeting Disadvantages
– Usually needs acquiring Activity Based Budgeting software program
– Requires training of all supervisors consisting of budgeting division – Requires individuals to truly comprehend what drives their spending plan – Eliminates justification that task quantity transformed since it makes noticeable quantity modifications – Requires everybody to approximate or accumulate task quantity
By comprehending just how sources are changed right into solutions or items, as well as by focusing on the price of tasks, task based budgeting assists an organization to acquire a greater understanding of just how prices act in their company as well as which tasks develop considerable quantities of expense. Organizations can after that start to regulate their expenses based intangible tasks as opposed to reasonably uninformative basic journal or expense centre reports.
In various other words, task based budgeting is budgeting, preparation as well as managing by tasks instead than price aspects of a company. It establishes a versatile budget plan based on task job tons that is not as stiff as journal of the line product budgeting that pre-identifies expenses even though that price might not be of usage at all.
When automated, task based budgeting can quickly as well as precisely generate economic strategies as well as designs based on differing degrees of quantity presumptions.
Task based budgeting likewise can get rid of a lot of the laborious job in conventional budgeting. Task based budgeting evaluates the solutions or items to be generated, what tasks are called for to generate those items or solutions, and also what sources require to be allocated to carry out those tasks.
For an organization to succeed, it should comprehend, understand and utilitize its strong qualities and shortcomings in its current circumstance. A SWOT investigation is quite possibly the most widely recognized tool organizations use to examine their present condition and position themselves for what’s to come. It is frequently utilized as a feature of a strategic business action plan, as well as to evaluate projects or parts of an organization.
What is a SWOT analysis?
SWOT is an acronym for strengths, weaknesses, opportunities, and threats.
The SWOT analysis helps you see how you stand out in the marketplace, how you can grow as a business, and where you are vulnerable. This easy-to-use tool also helps you identify your company’s opportunities and any threats it faces. The process takes account of both the internal and external factors your company must navigate.
Strengths and weaknesses are often internal to your organization, while opportunities and threats generally relate to external factors. For this reason, the SWOT Analysis is sometimes called internal-external analysis, and the SWOT matrix is sometimes called an IE matrix.
What are the benefits of a SWOT analysis?
What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. By understanding the weaknesses of your business, you can manage and eliminate threats that might otherwise catch you unaware.
By using the SWOT framework to look at yourself and your competitors, you can craft a strategy that helps you distinguish yourself from your competitors and better compete against them in your market.
How do you complete a SWOT analysis?
A SWOT analysis is generally completed by gathering input from their team during a workshop. These workshops are often facilitated by a strategic planning consultant.
It can be useful to gather the following information before completing a SWOT analysis:
Outside your company:
What are the market trends in your industry?
What is your market share?
Who are your main competitors?
How can you stand out in the market?
How do clients perceive you?
What pitfalls and dangers await you?
Inside your company:
Sales and marketing performance
Financial performance and trends
The efficiency of your systems and processes
Key internal personnel, competencies, and governance structure
Your company’s culture and strategy
Your mission, vision, and values
With this information in hand, you’ll be ready to assess your company’s internal strengths and weaknesses, after which you can focus on external factors that could impact your company.
Strengths—Make a list of your company’s internal strengths. These are any competitive advantage, skill, proficiency, experience, talent, or other internal factors that improve your company’s position in the marketplace and can’t be easily copied.
a superior brand
valuable intellectual property
modern equipment and/or machinery
a well-trained sales team
low staff turnover
high customer retention
good supplier relationships
Consider your strengths from both an internal perspective, and from the point of view of your customers and people in your market.
Also, if you’re having any difficulty identifying strengths, try writing down a list of your organization’s characteristics. Some of these will hopefully be strengths.
When looking at your strengths, think about them in relation to your competitors. For example, if all of your competitors provide high-quality products, then a high-quality production process is not a strength in your organization’s market, it’s a necessity.
Weaknesses—These are the factors that reduce your company’s ability to achieve its objectives.
outdated equipment and/or machinery
insufficient marketing efforts
lack of financing
gaps in expertise
Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you don’t see? Are your competitors doing any better than you?
Be as honest as you can when identifying these deficiencies. It’s best to be realistic now and face any unpleasant truths as soon as possible. Ignoring weaknesses means you can’t make decisions that will strengthen your company.
Opportunities—Opportunities are external factors that allow your business to grow and be more profitable.
new potential markets
support from governments, the community or business partners
Opportunities should reference demand for your products and services or development potential.
Threats—Threats are external obstacles your business must overcome.
a declining economy
a consumer shift to other products
a labour shortage
legal or regulatory changes
It’s often useful to take a close look at your competitors’ strengths to identify external threats to your company. Again, be as honest as possible.
A SWOT analysis doesn’t have to be a long, complex document. Two or three pages of point-form notes are usually sufficient to focus on essential findings.
A SWOT analysis will position you to seize opportunities and prepare effective strategies. Getting a clear and realistic view of your internal environment will help you identify ways to better satisfy clients, achieve your objectives and strengthen weaker areas that have an impact on your performance.
Analyzing your external environment help you prepare for opportunities (e.g., changing demographics, the announcement of a new residential development in the area, a new trade agreement) and threats (e.g., new technologies, changing exchange rates, loss of a major employer in the community, new trade agreement) that will affect your business in coming years.
Having identified these strengths, weaknesses, opportunities, and threats, you should work with your team to develop an appropriate response by answering the questions below:
How do I use a SWOT analysis in my strategic plan?
Don’t make the mistake of preparing a SWOT analysis and then ignoring it as you develop your strategic plan. Your plan should include concrete steps to harness your company’s strengths in order to target the opportunities identified in your analysis.
The actions identified as priorities should be incorporated into an action plan that sets a deadline and identifies a person responsible for carrying them out.