Bookkeeping is a task that requires consistent attention year-round, not just in the period before HMRC submissions are due! With that in mind, here are the essential bookkeeping tasks to get done in December:
Clean up the books
Accountants Bath will tell you that December is the ideal time to review your books and check that everything is looking as it should. If you have QuickBooks, use the ‘ask my accountant’ feature to start, or speak to your accountant to check that everything looks good. Check your assets and liabilities too, to make sure all small transactions have been correctly coded. For example, often office supplies will be incorrectly coded to computer equipment. Then, check that your loans, payroll liabilities and credit lines are up to date and accurate.
Have your books reviewed
Make sure your accountant has reviewed your books before year-end. Don’t meet with your accountants in Bath until the new year. You must have your tax review and estimate in place before HMRC needs to be paid. This makes sure you can plan in advance, especially if you owe more tax than you expected. Contact a good accountant such as Chippendale and Clark to find out more.
Use this time to check coding with your accountant and to discuss any errors, usually because large purchases have been classed as expenses when they are actually assets, which then affects your profits and taxable income to a significant degree.
Budget
Every business needs a clear budget, and this should be in place before year-end. This will put you on a great footing for the year ahead, and will ensure everyone is on the same page financially.
Overall assessment
Use this time to carry out an overall review into your bookkeeping and accountancy state of play. Are you in a strong position? Do you need to do anything differently? Do you need to work with your accountant to improve your position, or even find new accountants in Bath? It’s the right time of year to review everything and ask those important questions to be ready for 2025!
