8 accounting steps to consider for 20188 accounting steps to consider for 2018
Company offers useful tips ahead of the new business year
December 29, 2017
Perhaps it’s a New Year's Resolution. Or maybe you're tired of jumbled records. Or you may even be organized and you're ready. The folks at Redwing Software, Redwing, Minn., sent out some tips that offer come concrete help for farmers, and any small business, that can help get you set for the new business year.
Check out these ideas and consider what you need to do for your operation.
1 - Back up your data. How often do you back up your data? You may be tired of hearing it, but backing up regularly is a good idea. The new year is a good time to implement a new backup strategy, or for purchasing an auto backup service to install on your computer that allows you to protect your data.
2 - Perform a physical inventory. Do you have outdated inventory? How much grain do you actually have on hand going into the new year? And while the new year is just days away, should you move some crop for tax purposes this year?
3 - Make adjustment entries to your records. Balance your inventory and payroll liabilities and check all accounts payable and accounts receivable reports to make sure the amounts are accurate.
4 - Check for open orders. This isn't for everyone, but if you track sales, run a report to see the progress on payment.
5 - Reconcile bank and loan accounts. Reconcile all cash, loans, credit lines and credit card accounts with their statements. Compare the reconciliation reports to your balance sheet to be sure the amounts match. By not reconciling you could have a payment due that you didn't plan for.
6 - Print year-end financial statements. Print your year-end financial statements including an income statement balance sheet and a general ledger report.
7 - Take a fixed asset inventory. This is something many farmers may not have done. See what you're carrying on your books versus what you really have on hand. This step, for many businesses, can find items that have been on the books but not around for years.
8 - Create a new budget. Of course that should have been done sooner, but the first week of the new year is a good time to get that process going. Modify the budget, use the data for what-if scenarios and have the information on hand to determine when to market grain or livestock for best profit potential.
Source: Redwing Software
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