The financial statement is an accounting document that summarises information about the situation of a company. Many companies have to prepare and present these financial statements. But how can you effectively manage their production for your clients?
Drawing up a review of the accounts and making inventory entries
This step helps in justifying the balances in the balance sheet accounts and to check that invoices for income and expenses have been recorded in the accounts. Thanks to this operation, the accounts will be able to reflect the reality of the economy of the company’s flows. To avoid being quickly overwhelmed by all the auditing work at the end of each year, it is best to carry out an audit every month. You should know that inventory work is imperative for any legal entity that is obliged to keep track of its accounts. It serves to count and value the stocks present in the company on the last day of the financial year. The comparison with the identical value at the end of the previous financial year will allow the difference to be recorded in the accounts. This is based on whether it is negative or positive and will be of major importance in calculating the company’s margins. To be successful in your monitoring and operations, you should be guided by the ASC 842.
Starting the annual financial statements and exercising the tax return
When the audit is done, all of the company’s annual financial statements should be produced. They are placed in the income statement, balance sheet, schedules and management tables, allowing you to understand some of the amounts that appear in the balance sheet and some of the liabilities that do not. Then, with these financial statements, you need to produce a tax return. This is a standardised statement of the company’s financial statements for the tax authorities. Through the tax package, a calculation of the corporate tax is made by the company. The company must then pay this tax.
Using the right tool to produce your accounting information
Producing financial statements is a complex task. You need to equip yourself with a solution that is adapted to the demands and organisation of the company in order to produce accounting information with better quality and productivity. This tool should be easy to use, and offer classic standard features, but also several features that simplify the life of the accountant. The work will now be good for all accountants who do their year-end closing with this kind of tool.