Only two days to go and the year is over. Here are some tips to consider before you reach 2017, and a few more as you continue to wrap up the year in 2017. We’ve learned a lot over the past 15 years from hundreds of top pool and spa dealers, and are excited to share these tips. As you perform this year’s wrap-up, these tips are designed to help you now as well as help your business continuously improve moving forward.
Final Checklist for Wrapping Up 2016
Tip 1: Sales
Run your Open Order Report and make sure all your client accounts are up to date on invoices and close sales before the end of the year. If they are not paid in full by year-end, make brief notes on why and expected paid date. You don’t have to run the year end specifically on the last day of the year, in fact, most businesses wait until they have processed all of the payments and receipts for the year they are closing. In the meantime, you are free to post transactions for the new fiscal year.
Tip 2: Mobile Syncs
Make sure all of your field techs using Mobile software have synced their devices and the orders have been appropriately invoiced.
Tip 3: Inventory
- Receiving Goods: If you have deliveries which have not been received, make sure you receive them into your software
- Cycle Counts: If you have cycle counts in progress, finish them prior to the end of the year
- Inter-Company Transfers: If you have transfers in progress, complete them prior to end of year
Tip 4: Accounting
- Held Transactions: If your software allows for suspending transactions, run reports that summarize those transactions and complete as many as possible prior to the end of the year
- Payroll: Record all of your payroll entries for the current year
- Banking: Complete as many banking transactions as possible to get banking transactions up to date
- POST: if your software posts manually to the general ledger
While not a complete list, these tips get your company data in shape for creating an assessment of where you are from a profitability perspective. Now you can consider possible year-end decisions while you’re celebrating the New Year:
- Profit Sharing contributions
- Asset write offs (inventory or AR)
- Large purchases (remember need to be placed in service in 2016)
2017: Tips Heading into the New Year
Tip 1: Accounting
Focus on the balance sheet. If your balance sheet is accurate when you hand it off to the tax preparer or accountant, your profit and loss is accurate. And of course, do some housekeeping to make sure all your files are in order along with invoices, receipts, and statements filed where you can find them. If you have any pre-paid expenses such as insurance or other services, you may have recorded them as Assets but also make sure you categorize them as Expenses.
And don’t forget to get records from any employees for mileage, especially if you have a field service or delivery truck(s), this mileage certainly adds up! If managing and closing your year-end books has become an insurmountable headache, consider implementing month-end closings throughout the year.
Make sure you are using a software with strong accounting functionality to help you drive measurable performance and strong business decisions. Be sure to check out the accounting features of Evosus Software.
Tip 2: Inventory
If your year-end inventory is typically a tangled up mess, this is going to be a lifesaver! The reality is, inventory can have a devastating effecting more than your bottom line.
First do an assessment of current inventory and don’t forget traveling stock in field service trucks or delivery trucks. You might have to perform counts after hours or on days your business is typically closed to ensure accuracy. Document your stock, both cost and retail value. If you have a large warehouse, divide the floor into sections and assign one or two counters to each section. If you can afford it, two is better than one to ensure accuracy as well as speed.
Next, assign a Troubleshooter. This person will research any large discrepancy in stock and try to locate the missing or unaccounted for inventory—ideally in real-time as soon as the discrepancy is identified.
Lastly, Reconcile. Once you are confident your counts are good, enter the adjusted counts into Evosus. When you make the adjustments, make sure to add clear notes on why the change has occurred. If you have found large discrepancies, you may want to put in place a monthly or weekly count in 2017 until these are cleared up.
Tip 3: Payroll
Ensure your employee data is up to date. Payroll and employee expenses (benefits, reimbursements, bonuses, etc.) are accurate and compliant. You are liable for incorrect tax and National Insurance deductions, not the employee. Ensure employees attach correct receipts to their expense forms.
If you are using any sub-contractors, you’re required to send them a 1099 by January 31. Identify your 1099-MISC vendors, document the relevant details and use the services of an online 1099 filing service to send the forms across if you are not an Evosus Payroll client – If you are an Evosus Payroll be sure to contact our payroll department to assist you so you can ensure accuracy.
Even after the end of the year, it’s important to focus on the material side of the business; banking completeness, inventory and payroll. Lastly check all of your balance sheet accounts prior to handing your financial reports off to the preparers or third party professionals.