Essential Checklist for a Successful New Financial Year
The start of a new financial year marks an important milestone for every business. It's the perfect opportunity to reassess your financial processes, rectify past errors, and position your company for
As the new financial year approaches, businesses need to systematically review their financial health, compliance, and payroll practices to ensure a smooth transition. Here are critical factors you must consider:
1. Physical Stock Verification
Performing a physical stock verification ensures your inventory records align with actual physical stock, highlighting discrepancies to prevent financial inaccuracies.
2. Accounting Value and Valuation Rate of Products
Review product valuation rates to reflect market realities, factoring in depreciation and demand changes for accurate profitability reporting.
3. Pending Payments
Assess pending payments carefully to identify and schedule overdue or upcoming vendor obligations, aiding accurate cash flow forecasting.
4. Receivable Confirmation
Confirm accounts receivable by validating outstanding client balances to improve cash flow accuracy and identify potential bad debts.
5. GSTR 2A Pending List
Review and reconcile GSTR 2A pending entries to ensure alignment with supplier data, minimizing GST compliance risks and ensuring accurate ITC claims.
6. Closing Stock
Evaluate closing stock precisely, as accurate valuation directly affects profit calculations and is essential for tax reporting.
7. TDS and TCS Pending Lists
Verify pending Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) liabilities to avoid penalties and interest from tax authorities.
8. Employee Payroll Information
Review and update employee payroll information, ensuring salaries, bonuses, taxes, and other deductions are accurately recorded and compliant with regulations.
9. Additional Factors to Consider:
- Fixed Asset Verification: Ensure fixed assets are verified and properly depreciated.
- Bank Reconciliation: Ensure all bank accounts are reconciled, identifying and resolving discrepancies.
- Loan and Advances: Review outstanding loans and advances to assess future repayments or recovery strategies.
- Compliance Review: Confirm regulatory compliance across financial aspects, ensuring adherence to updated legal requirements.
By addressing these critical factors proactively, your business can achieve greater financial accuracy, compliance, and preparedness for the new financial year. At Thirvu Soft Pvt Ltd, we help businesses navigate these complexities smoothly. Visit us at www.thirvusoft.com to learn more about our services.
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