March End is Fast approaching!!! For most small businesses, Financial Year End is alarming. It is at this time you feel – “ to start a business is easy, but to manage it….is where the struggle lies”. Also, March tends to be the busiest part of the entire year.
Right from sending customer statements, reconciling bank accounts, preparing financial documents, filing taxes, and what not! If not done right, you may end up overpaying or underpaying the taxman which invites trouble upon your business.
It is for this fear it’s commonly heard from the SMEs that
Jab padhte tha tab bhi march daratha tha
Ab kamate hai tab bhi march daratha hai!
Well! It’s time to act. It’s time to prepare for the financial year end to make it less painful.
Here’s what you need to do before this March 31st.
- Keep your accounting books accurate.
- Know exactly what details of transaction you have and what’s missing.
- Send the invoices for all the services you have provided; products that you have sold.
- Check outstanding invoices.
- Remind your customers of their outstanding payments.
- Check final amount matches: Income, Expenses, Profit / Loss and the taxable amount.
- Investigate discrepancies and mismatches and try rectifying it.
For the businessmen who are mainly using paper/pen method of business accounting i.e. recording of the transactions on the basis of actual receipts and payments manually, the financial year end timeline will be a nightmare!
Especially, if you’re doing all these at the last moment, your two hands and a brain will certainly not be enough to handle it. And if you just had a thought – Let’s scrap everything and start fresh right now! It’s time you start using business accounting software like vyapar to make your coming Financial Year Pain Free!!!
Manage your financial year from the DAY 1 using a business accounting software
Without a proper accounting system in place, you’ll have bad time managing your business accounts; you could miss out on a few payments(and sometimes huge) and could generate defective reports which cost your business. However, if you are using a business management software like vyapar, the entire process becomes much hassle free. With vyapar, you can quickly find any invoices that have not yet been paid and can also notify those whose payment is pending with just clicks.
Also, as the year draws to a close, you will have to deal with payments that you have not yet received. With Party Balances report in Vyapar, you get to instantly see if there are any outstanding balances and find out how much money your parties (customers, vendors etc) still owe you. Certainly, a good accounting software can help you prepare better for the coming financial year so that you can avoid last minute stress.
Another year has passed, Another year has come!! It is important that you do this for a stress-free – 2018-19. Always remember
“ The best time to start was a year back. The next best time is now!!! “