Supporting Year-End Accounting with Integrated Software

Performing year-end accounting is crucial to business success. It helps companies remain financially accurate by keeping track of cash flow. Additionally, year-end accounting supports consolidating debts, keeping track of assets and maintaining profit margins. 

For the upcoming tax season, year-end accounting prepares companies for avoiding tax compliance issues. A clear accounting reconciliation process can help a business avoid common problems associated with failing to comply with tax regulations, which can include harsh penalties, such as paying crippling fines.

Year-end accounting also supports future business planning, as reviewing financial statements at the end of the fiscal year allows a company to identify trends that generate profitability and recognize areas of improvement where resources can be better optimized. 

The valuable insights that year-end accounting provides can be supported by the right software solution. In particular, an integrated software solution that provides support in reviewing, reconciling and verifying financial transactions, in addition to preparing financial statements and annual reports for investors or tax authorities.

Automate customer invoices

When year-end accounting is supported by an automated invoice process, it can be easier for businesses to keep track of customer payments and ensure they are received on time. Automated customer invoicing offers features designed to control and approve the invoice process. It can also eliminate year-end accounting surprises that consume valuable resources.

Spending time tracking down past invoices and settling debts can be a time-consuming process. This can be especially true at the end of the year when resources are limited. Compared to manually reviewing invoices, an automated process can save time and energy by eliminating problems that occur when payments are submitted past their due date. 

An automated system that integrates with other areas of a business allows for all invoices to be automatically stored in a centralized location that financial experts can quickly and easily access to review previous invoices, in an effort to satisfy company needs and produce reports on demand.

Connecting accounts receivable with payment processing, general ledger and reporting data also increases the amount of control a business has over financial management and accounting. Automatically associating and collecting fees on the appropriate accounts and tracking payment status from submission to settlement can also aid with year-end job costing.

Online portals for customers

Giving customers the power to easily view their accounts on-demand can limit the hurdles that a business must experience while performing year-end accounting. With online portals, a business can create a more organized workflow. Online portals allow customers to easily and securely stay compliant while reconciling accounts.

When customers have access to their own online portal, they feel empowered. Customers can easily view their balances on invoices, submit payments and collect receipts. This convenient resource supports online payments, in addition to automatically allocating and collecting fees. It also keeps accounting systems updated, which can simplify the number of tasks to be performed during year-end accounting. 

Customers get a simple and effective solution that can be accessed throughout the year. When a company is ready to perform year-end accounting, it is easy to review payment transactions, issue refunds or settle disputes using transactional data. Additionally, all of that information is up-to-date and accurate. Instead of relying on multiple avenues to solve year-end discrepancies, resolutions are available through one point of contact.

Payment methods

Accepting multiple payment options throughout the year can also help reduce the stress of year-end accounting. Major companies allow customers to use online debit, credit card or ACH payments to improve their cash flow, which also works for security and cleaning companies. 

ACH payments in particular have become widely popular. More customers are paying their invoices via ACH payments instead of using paper checks. To avoid the risks of collecting paper checks, banking information can remain electronic. This minimizes vulnerabilities and the threat of check fraud.

By integrating systems and allowing customers to choose from different payment methods, companies encourage customers to better manage their accounts. Offering multiple payment options can also improve turnaround time on invoices. Improvements to efficiency and better managed customer finances translate to less stress and hassle at year-end. During this time, simplified processes, reduced errors and lessened processing risks matter most.

Year-end accounting and TEAM Software

During the year-end closing period, businesses must perform tasks such as handling accounts receivable, reviewing receipts and checking invoices. Despite the pressure during this time, it is possible to avoid the stress of performing year-end accounting. Integrated software can stream processes and help businesses put their best foot forward in the new fiscal year. 

Specifically, accounting software can help with updating job budgets, creating new fiscal year entries and managing retained earnings. Other helpful year-end accounting tools include payroll tax updates, reviewing tax rates, handling tax forms, electronic filing and the importance of validating county of residence for multi-state employees.

The specific year-end accounting tasks that businesses follow may vary. However, ensuring that financial teams are well-equipped for year-end accounting involves accessing industry tools. Integrated software can optimize accounting workflows and improve financial accuracy.  For more information on how TEAM Software tools can help, schedule a time to speak with one of our experts.