Fri Mar 24 2023
3 min read
The end of the financial year can be a stressful time for founders and finance teams alike. The deadline pressure to file your taxes, last-minute tasks like closing the accounting books, and planning for the year ahead all contribute to creating a high-pressure environment at startups.
With that in mind, we at Klub have built a scorecard for you to measure your financial readiness at this time of the year. Add the points for each task you have completed correctly.
Reconciliation of all accounts is one of the most critical tasks in closing the financial year. It involves comparing two sets of financial records, such as bank statements and corresponding entries in the accounts of the company, to ensure that all transactions have been recorded accurately. No matter how meticulous you were, there is always a possibility of wrongful data entry or lost invoices. Even the slightest error can throw your books out of balance. This should be done by the 31st March, 2023.
Advance tax refers to paying a portion of your income tax liability in advance. During a financial year, from 1st April to 31st March, advance income tax is payable on or before 15th June, 15th September, 15th December, and 15th March.
If your company’s payments- rent, commission, professional fees, or salary exceed a certain limit, you must deduct TDS.
It is critical that you plan for the year-end payroll processing as it is one of the most significant expenses for the company. Here is a checklist to go by:
The final step in ensuring a hassle-free year-end is to close out all the accounting books. This can help the company get a sense of the financial health of the business and optimize and plan accordingly for the coming year.
Calculate the revenue earned this year along with the costs incurred by the business and make sure its recorded correctly in the accounting books. Next, update the fixed asset register so that you can claim depreciation on Fixed Assets. Lastly, make a provision for which vendor bills have not been received by 31st March 2023.
If you scored 8 or above then congratulations! You're a pro in dealing with the stress at the end of the financial-year.
If you scored 4-8 points, then you're on track but hurry! Only 8 days left😬
If you scored 4 points or lesser, then you need to buckle up! Some last-minute advice from Klub verified financial advisors might be just what you need. Follow us and stay tuned for a list of contacts you can reach out to.