By - December 3, 2024
Categories: Accounting, Bookkeeping, Financial Reports, General
There’s less than one month left in 2024. Is the bookkeeping for your automotive business up to date?
If you’re anything like us, you feel like this year flew by in the blink of an eye. It’s time to ensure that your books and reports are squared away as this year comes to an end.
In this blog post, we share important steps to start the new year on a healthy financial footing.
Reconcile bank and credit card statements.
Reconciling your automotive business’s credit card and bank statements at year-end is crucial for accurate financial reporting and tax preparation.
By reconciling, you ensure all transactions are accounted for, identify discrepancies, and prevent errors that could lead to costly penalties.
Review your yearly income statement.
Close out the year with a clear understanding of your income by reviewing your yearly income statement.
Throughout your review, confirm that all of your transactions are properly categorized. Identify if there are any transactions in the miscellaneous/uncategorized account or “Ask My Accountant”.
Compare this year’s statement to the previous year’s statement for growth patterns and revenue increases. And don’t forget to calculate the gross profit percentage of net revenue.
Review your yearly balance sheet.
Analyzing and adjusting your yearly balance sheet can help you identify trends and assess your automotive business’s current financial position.
A thorough review helps you understand your business’s liquidity, solvency, and overall financial performance so you can make informed decisions in the upcoming year.
Evaluate the following three categories on your yearly balance sheet to confirm prime accuracy.
- Your assets
- Your liabilities
- Your equity
When reviewing each of these categories, ensure that all transactions are accurate and correctly recorded in the appropriate accounts.
Additionally, ensure that all adjusting entries are accounted for and all account balances make sense. Reconcile any discrepancies found.
Download our free end-of-year checklist.
Now that you’re ready to tackle your year-end review, we’d love to offer a free resource to support you.
When you download our free end-of-year checklist, you’ll have peace of mind that all of your bases are covered for a healthy and bright 2025!
