Preparing for Month-End- Here’s What You Need to Know

Month-ends are a matter of headache for almost everybody. Irrespective of whether you are a working professional or own a business of your own, the end of every month throws a lot of challenges. When it comes to effectively handling the financial aspect of a month-end, you can hire the best accounting services in Mumbai to ensure that your money is managed properly.

Having clarity about the various financial procedures, filing of returns and taxes, and maintaining proper records of all financial transactions is imperative to having a smooth month-end. So, if you want to ensure that your month-end is hassle-free, you must keep in mind the following things:

Record incoming and outgoing transactions

You must be aware of the cash inflow and outflow in your organization for every month of the financial year. Tallying your books with the available invoices can help keep a transparent record of all transactions. A few activities that you need to record are as follows:

• Revenue
• Invoice payments
• Loans
• Bills/ Interests payable

Reconcile your accounts

To ensure that all your financial transactions have been recorded properly, you must reconcile your accounts before every month-end. This includes comparing your internal records with the account statements of some external agencies such as the bank. Usually, you can avail yourself of the best accounting services in Mumbai to handle the process. This procedure helps you to weed out any possible discrepancies in your accounts. Usually, the accounts can be categorized as:

• Cash, Savings, and Checking accounts
• Banknotes and loans
• Accrued or Prepaid accounts

Review your fixed assets and petty cash

Keeping a track of the petty cash that you use for daily business activities is very important. You can tally the receipts with your existing cash balance and compare the difference. Further, you must evaluate the monetary value of all your fixed assets at the end of every month. Fixed assets cannot be quantified by an absolute cash value and tend to face depreciation over time. As a result, constant evaluation of fixed assets such as buildings, land, machinery, and vehicles is necessary to give you an idea of your existing value as an organization.

File your taxes in time

When you own a company, you are liable to pay several taxes and returns such as the Goods and Services Tax (GST), the Income Tax (IT), and so on. Usually, there is a deadline for filing each of these taxes. For example, GST needs to be paid monthly and the amount varies from one month to the next. So, make sure that your taxes and returns are filed on time to avoid legal issues.

Thus, keeping a few simple tips and tricks in mind can help you immensely in having a complication-free month-end. It is always advisable to hire the best accounting services in Mumbai that can help you in this matter and keep your business running smoothly.