As we near the end of the first quarter, it’s time to close the books on 2021. This process can be daunting for business owners, but it doesn’t have to be. Here at Bayou Bookkeeping & Tax Services, we want to help you finalize your previous year’s transactions/journal entries, finalize your financial statements, and close the books on last year. Once that is done, you can focus on this year’s financials with peace of mind!
Finalize Last Year’s Journal Entries
Before you can focus on this year, you have to close out last year’s journal entries. This means recording any transactions that haven’t been recorded yet and ensuring all your accounts are in balance. At Bayou Bookkeeping & Tax Services, we can help you do this quickly and easily.
Finalize Financial Statements
Once your journal entries are complete, you’ll need to finalize your financial statements. This includes creating a Balance Sheet, Income Statement, and Cash Flow Statement for the year. We can help you make sure these statements are accurate and compliant with Generally Accepted Accounting Principles (GAAP).
Close the Books on Last Year
Lastly, once your financial statements are finalized, you’ll need to close the books on last year. This entails transferring any remaining balances from your revenue and expense accounts to retained earnings. Closing the books on last year also includes creating a post-closing trial balance to ensure all your accounts are in balance.
Focus on This Year’s Financials
Once you’ve completed these steps, you can focus on this year’s financials with peace of mind. First, you should make sure you stay on top of your budget and forecasting. Then, you should track your progress against your goals to make any necessary adjustments. Finally, ensure you stay on top of your financials by keeping current records, maintaining accurate bookkeeping and accounting, and filing tax returns within allotted timeframes.
Professional Financial Services
At Bayou Bookkeeping & Tax Services, we can help you with all of this and more! If you’re looking for assistance to close the books on 2021, please get in touch with us at (225) 442-1137 for service in Baton Rouge, Walker, and the surrounding areas. We would be happy to help!