Tuesday’s= Starting a Business
New business owners will be experiencing their very first year-end soon. This exciting event requires a bit of preparation.
If you have inventory then you have to count it at year-end. You not only have to count it, but you have to figure out what you paid for all your inventory so you will need to take a look at all your receipts in order to cost out your inventory.
You will need to prepare a list of all of the customers who owe you money at year-end. This is called your receivable list.
You will need to prepare a list of all of the people you owe money to. This is called your payables list.
These are the important things to get done right at year-end because it is easiest to measure these item at the time. The rest of your year-end work, like reconciling your bank account, can be done later in the year.