Proactively monitoring the state of your company’s financial performance on an ongoing basis is critical as a New Mexico employer. To improve your chances of achieving annual organizational goals, it is essential to get clarity on the current situation to see if the company is on track or if adjustments need to be made. Learn more about how to perform a financial health check to ensure your finance and accounting teams are ready for year-end:
Create a Plan
Outlining specific tasks with due dates to finish out the year prevents critical tasks from being overlooked or not having enough time to focus thoroughly. Create a plan that works backward from your company’s fiscal close date and includes timelines for all of the necessary activities with corresponding deadlines. Build in buffers for expected completion time since delays are likely. This plan can be referred to throughout the rest of the year to give reminders and keep everyone on track.
Organize Records
An essential part of a successful year-end for your finance and accounting teams is having easily accessible, updated financial documents. Organize records to streamline the accounting process to close out the year. This includes business receipts, balance statements, income statements, cash flow, inventory records, and any other relevant financial statements for your business’s year-end needs. If they are all stored in different places, now is the time to compile them and develop a tidy and intuitive storage system.
Address Outstanding Invoices
As the final months of the year approaches, your finance and accounting team should prioritize closing out any pending late payments owed to the company. Address any outstanding invoices from clients to maintain accurate records and boost cash flow. After reviewing the status of accounts receivable, your team should also assess the accounts payable records to settle any payments owed to other vendors by year-end.
Reconcile Accounts
Be ready to start the new fiscal year with a clean, error-free slate by reviewing all financial statements and cross-referencing them with company accounting records. Reconcile accounts to check for any discrepancies between recorded transactions in your system and any bank or credit card statements, invoices, or receipts. Get all errors resolved and all pending transactions settled before the end of the year to avoid the risk of costly mistakes.
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