What Your Year-End Corporate Tax Return Entails
We know that nobody enjoys handling year-end financial statements or for that matter, anything tax-related. Tax-filing dates stare at you on your calendar, and you know you are going to have to do something about it sooner than later. Fortunately, the superheroes at Numetrica are here to help make this a painless process for you and your business. Our tax pros have this down to a science and are ready to take on your account. Today, we are going to take a look at what your year-end financial statements for your corporate tax return should look like.
What Are Year-End Financial Statements?
A staple in business accounting, year-end financial statements are exactly what its name suggests. This is where we take a look at the end of the year at the financial health of your company. Think of it like an annual check-up, but for your bottom line.
This balance sheet is created and/or updated at either the end of the fiscal year or calendar year. Let’s take a closer look at what should be included in your year-end paperwork.
Profit and Loss Statement
Commonly known as P&L statements, this is the most important accounting document your business has. Here is where you list all of your company’s assets and liabilities. This document is designed to show a clear picture of where your business stands financially at this very moment. You typically will have one column to show all of the profits/revenue and then the second column shows the liabilities for the company. This includes of everything from product costs to payroll, to office supplies.
Cash Flow Statement
While similar to a P&L statement, a cash flow statement is also needed to prepare your corporate tax return. This highlights the inflow and outflow of money and provides a picture for specific periods of time. Included in a cash flow statement are notations of any investments bought or sold, as well as loans and other debts. If your business is looking to attract outside investors, you will always need to have a current cash flow statement so any interested parties can have a clear financial picture of your company. This document also helps your accounting team do their job to the best of their abilities as well.
While P&L statements and cash flow statements are prepared for your tax returns, it also provides a great opportunity to assess your business going forward. Your job as a business owner is usually focused on day to day operations, and you probably don’t always get to sit down and crunch the numbers. Fortunately, at Numetrica, we do all of that pesky number crunching for you. Once we are done, you will have a complete snapshot of your business’ financial health.
Now that your corporate tax return is completed, you have the time and the data to help you make new business decisions. Don’t let all of this work just be for the government! Use these statements to make adjustments where you need and to help shape a clearer path for your business’ goals going forward.
Don’t Wait Until the Last Minute
The best advice for avoiding a tax deadline scramble, is to simply plan ahead. The superheroes at Numetrica can help set your accounting up to record this data throughout the year. Have an ongoing tabulation of profits, losses and cash flow that you can check-in with on a monthly basis. This way, you don’t have to rush creating year-end financial statements all at once and under pressure. At Numetrica, our cloud-based accounting makes all of this possible with the click of a button. Additionally, you can make better business decisions by always having a clear financial picture of your company as it shifts from quarter to quarter.
Don’t want to spend any extra time on your financial documents? We get it. Your main job should be to run your business, not be trapped under a desk full of accounting work. Let us be your Chief Financial Officer and handle everything from your corporate tax return, to your bookkeeping, cloud accounting, and more. We can be retained on a weekly or hourly basis if you don’t need full time assistance.
Running a business is already hard enough. Make your accounting life as easy as possible with Numetrica. Our skills, expertise and insights can help keep your business up to date with taxes as well as guide your financial strategies for the future. Call Numetrica and set up a consultation today.