Year-End Activities For Accountants And Business Owners

The pivotal role played by accountants in the achievement of the corporate strategy of organizations cannot be over emphasized. The contemporary accountant translates the company strategy into quantifiable elements through budgets & budgetary control, financial reports & analysis while reporting on the bottom line i.e., profit or loss. Accountants also play a major role in safeguarding the organization’s assets by instituting internal controls to mitigate potential losses through fraud and financial reporting errors. Accountants liaise with statutory bodies such as; Ghana Revenue Authority (GRA), Social Security and National Insurance Trust (SSNIT), National Pensions Regulatory Authority (NPRA), Registrar of Companies etc. to ensure the organization is in compliance with laws and regulations.

As the year comes to a close, I share some year- end activities that ought to be performed for the betterment of your organization’s financial health. Some of these activities include;

• Review the organization’s asset register to ensure the details of all physical assets owned or controlled by the organization are fully captured. Subsequently conduct a physical verification to confirm the existence of all tangible assets.
• Review financial investment contracts with financial institutions to ensure the terms of these investments have been complied with. Notify the financial institution about any changes you may want to make in the terms.
• Review receivables aging report and contact debtors to collect as much payments as possible, especially overdue invoices. Conduct reconciliations with customers where required.
• Make preparations towards conducting the year-end inventory count.
• Ensure bank and cash reconciliations are prepared, reviewed and signed off.
• Make preparations towards finalizing the organizational budget based on the corporate strategy for the ensuing year.
• Review account payables aging report and conduct reconciliations with suppliers where necessary.
• Review material transactions and ensure supporting documents are available for same.
• Review tax, social security and other regulatory filings to ensure compliance and avoid potential squabbles with regulatory authorities.
• Make preparation towards finalizing the annual financial statement of the organization and make same ready for audit.

The ultimate purpose of these activities is to ensure that proper books of accounts is maintained for the organization. This ensures a solid basis for decision making, mitigate potential losses through fraud & errors, as well as for tax planning and reduced tax liabilities.

About the writer
Samuel Osae-Ansah B.Sc. MBA, CA, is a Chartered Accountant and a Licensed Audit Practitioner. He is an entrepreneurship enthusiast and Accounting Consultant who takes keen interest in the growth trajectory of businesses and provide advisory services in that regard.

E-mail: osaeansah@yahoo.com
Tel: +233 249129198

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