Conducting a year-end review with your CPA can provide several important benefits for your business:
Financial Assessment and Planning
A year-end review allows you to:
- Assess your company’s financial performance over the past year[1].
- Identify key metrics and trends in your financial statements that can help you run your business more profitably[1].
- Compare your company’s margins and performance to industry benchmarks[1].
- Develop strategies to improve profitability and efficiency in the coming year.
Tax Planning and Compliance
Working with your CPA at year-end enables you to:
- Ensure proper regulatory reporting and compliance with accounting standards[1].
- Implement newly issued accounting standards in a timely manner[1].
- Identify potential tax-saving opportunities before the end of the fiscal year.
- Plan for estimated tax payments and prepare for the upcoming tax filing season.
Audit Preparation
If your company requires an audit, a year-end review helps:
- Prepare financial statements using generally accepted accounting principles (GAAP)[1].
- Identify and address any internal control deficiencies[1].
- Ensure your financial records are accurate and properly documented for auditors.
Strategic Insights
Your CPA can provide valuable insights to:
- Improve accounting controls and operational efficiencies[1].
- Share industry best practices and trends based on their experience with other clients[1].
- Offer recommendations for addressing financial challenges or capitalizing on opportunities.
Enhanced Communication and Transparency
A year-end review facilitates the following:
- Improved communication between management and shareholders about the company’s financial position[1].
- Greater transparency into the company’s financial health and performance.
- Opportunities to discuss future goals and align financial strategies accordingly.
By conducting a thorough year-end review with your CPA, you can comprehensively understand your company’s financial position, ensure compliance, and develop strategies to drive growth and profitability in the coming year. This process can make your company more valuable and attractive to potential investors, buyers, or lenders[1].
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Citations:
[1] https://lslcpas.com/benefits-financial-statement-review/
[2] https://www.workramp.com/blog/why-are-performance-reviews-important/
[3] https://www.performyard.com/articles/employee-review-format-when-is-the-right-time
[4] https://www.journalofaccountancy.com/issues/2017/dec/changing-performance-reviews.html
[5] https://www.srawatchtower.com/post/regulatory-compliance-best-practices-for-financial-entities
[6] https://www.journalofaccountancy.com/news/2023/may/make-performance-reviews-more-effective.html
[7] https://www.jcwresourcing.com/insights/blog/5-ways-to-improve-your-financial-compliance-strategy/
[8] https://onlinedegrees.scu.edu/media/blog/the-role-of-regulatory-compliance-in-finance