At the end of each year, all departments of the enterprise have to carry out a series of integration actions. Among them, finance is particularly important as the result of business activities over the past year
So, what do you need to do at the end of the year on the financial side of the company?
Cai Xiaojia sorted out this, and summarized it in three main aspects:Financial investigation, evaluation of the next year's final settlement, analysis of financial statements to eliminate risks
Financial situation checking
1.Cash Bank Account:There can be no negative numbers on the cash account;Check that the cash book balance is consistent with the cash on hand;Whether the cash on hand exceeds the limit requirements. The bank receipt should be filled in with the missing documents, and the bank should be completed (including the monthly bank statement).
2.Current payments:Year-end reconciliation is very important, to do a good job of reconciliation and clearing with customers and merchants in a timely manner, and to deal with the difference between some that are no longer collected or paid.
3.Inventory:Do a good job of inventory at the end of the year, and deal with the profit and loss in a timely manner;Check whether the actual stock of raw materials, work-in-progress, self-made semi-finished products, inventory commodities and other inventories is consistent with the book, whether there are scrap losses and backlog materials, and whether there are issued commodities and materials in transit.
4.Fixed Assets:Whether the book quantity of each fixed asset is consistent with the physical quantity, and whether there is any impairment;Whether there are any retired assets that have not been disposed of;Whether the information on the reporting of lost assets is complete.
5.Taxes payable:Check the detailed account of the tax payable, whether there is any accrual error, underpayment of tax, etc.;Check if the company's tax burden level is normal.
6.Cost:Notify the company's reimbursement personnel to reimburse in a timely manner to ensure that the expenses incurred at the end of the year are included in the current year, so as to avoid the costs incurred across years.
7.Other things:Check whether some large expenses or income are compliant, whether there are contracts;Check the prepayment invoice for revenue;Whether all kinds of loans (including personal loans and corporate loans) have been recovered, and whether the interest that needs to be paid has been accrued.
It is estimated that the amount of final settlement will be made next year
1.Employee Benefits:It is deducted before tax within 14% of the total salary and salary
2.Union funding:According to the total salary within 2% of the pre-tax deduction;
3.Staff education funds:The pre-tax deduction shall be made within 8% of the total wages and salaries, and the deduction shall be carried forward in subsequent tax years
4.Business Entertainment:It will be deducted according to 60% of the amount incurred, but the maximum shall not exceed 05%；
5.Advertising and business promotion expenses:
Generally, enterprises are allowed to carry forward the deduction in the following tax years according to the pre-tax deduction within 15% of the sales (business) income of the current year;
Enterprises that manufacture or sell cosmetics, pharmaceutical manufacturing or beverage manufacturing (excluding alcohol manufacturing) shall be allowed to carry forward the deduction in subsequent tax years according to the pre-tax deduction within 30% of the sales (business) income of the current year;
Tobacco advertising expenses and business promotion expenses of tobacco enterprises shall not be deducted in the calculation of taxable income.
6.Fees & Commissions:
For insurance companies, the pre-tax deduction shall not exceed 18% (including the principal amount) of the total premium income of the current year after deducting the balance of surrender money, and the excess part is allowed to be carried forward to the following years
For other enterprises, the deduction limit shall be calculated according to 5% of the amount of revenue recognized in the service agreement or contract, and the excess part shall not be deducted.
7.Public Welfare Donations:According to the annual total profit of the current year within 12% of the pre-tax deduction, the excess part is allowed to be carried forward to the next three years of deduction.
8.Supplementary Pension Insurance and Supplementary Medical Insurance:Deductions are allowed for the portion not exceeding 5% of the employee's gross salary.
9.Funds for the work of the party organization:The part that does not exceed 1% of the total annual salary of the employee can be deducted before the enterprise income tax according to the facts.
Analyze financial statements to eliminate risks
1. Asset-liability ratio performance:
1.Accounts receivable risk:Whether the accounts receivable are recovered, whether there are inflated accounts receivable, and whether there are bad debts written off.
2.Other accounts receivable risks:Whether the dismantling of funds is unclear, whether the shareholders' loans have been recovered, and whether the long-term hanging risk is not
3.Inventory Risk:Risks such as inventory overstocking, inconsistencies between accounts and facts, and attention should be paid to identifying false inventories with uncarried costs.
Second, the performance of the income statement:
1.Whether the proportion of selling expenses is too high:Understand whether the current sales channels are smooth, the market is opened, etc., and check whether the early publicity work is in place.
2.Whether the proportion of management expenses is too high:Poor internal operational efficiency and possible formalism management risks.
3.Whether the operating income has stagnated and declined:The development and growth of enterprises are hindered, and there may be situations such as poor market development and cold products.
4.Whether the operating expenses are too high:Aside from the necessary positive reasons such as corporate giving, excessive spending in other situations can be a matter of business mismanagement.
3. Cash flow statement performance:
1.Net Profit:If the net profit is positive, it means that the profitability of the enterprise is strong, but when the net profit is negative, it means that the profitability of the enterprise is weak, and in order to maintain normal operation, it is necessary to reduce investment or external financing.
2.Cash Flow:If the cash flow is less than 0, the company's operating cash flow may be in trouble and it will not be able to make ends meet.
Cai Xiaojia reminds:Enterprises can make a detailed analysis report on the balance sheet, income statement and cash flow statement, such as whether the gross profit ratio, net profit and expense increase or decrease ratio, receivables account period and inventory period are reasonable, and the unreasonable accounting ratio and unreasonable profit and expense increase or decrease rate will only attract the attention of the tax department.
There are several high-risk matters to close the accounts at the end of the year
1.Taxable income: The recognition of this recognition
Accurate recognition of taxable income is crucial for businesses. To accurately account for taxable income, the first step is to verify whether the sales revenue has been fully recognizedThis is especially true if the product has been sold, but no invoice has been issued, to comply with the recognition of the realization of taxable income.
In addition, the enterprise should also confirm and verify whether there are any matters that do not recognize income in the accounting treatment due to tax differences, but the tax law stipulates that the income should be recognized.
For example:For enterprises to donate products to external parties, make product advertisements, or distribute benefits to employees, etc., the tax law stipulates that it shall be regarded as sales, and the relevant income and costs shall be recognized when the final settlement is made.
2.Costs: Expenses should be avoided across years
In terms of costs and expenses, according to the principle of proportionality of pre-tax deduction, the expenses incurred by taxpayers shall be deducted in proportion to income, and unless otherwise specified, the expenses incurred by enterprises shall not be declared and deducted in advance or delayed.
In other words, costs and expenses should be deducted in the year to which they belong, and cannot be deducted in advance or carried forward to future years. Before closing the year-end accounts, the enterprise should check whether all the expenses of the current year have been recordedPay particular attention to the availability of in-transit documents
In addition, for some costs and expenses that may occur across the year, the relevant management departments should be urged to do a good job of finishing the workPrevent the omission of the costs and expenses incurred by the enterprise, and the situation that the expenses across the years are recorded in full at one time
3.Deduction vouchers: timely review to ensure compliance
According to the announcement of the State Administration of Taxation on the issuance of the Administrative Measures for Pre-tax Deduction Vouchers for Enterprise Income Tax (Announcement No. 28 [2018] of the State Administration of Taxation), if an enterprise should obtain but has not obtained invoices or external vouchers, or has obtained non-compliant invoices and other non-compliant external vouchers, if the expenditure is true and has actually been incurred, it shall request the other party to reissue or replace the invoices and other external vouchers before the end of the current year's final settlement period. If the reissued or reissued invoices and other external vouchers meet the requirements, they can be used as pre-tax deduction vouchers.
The financial officer before closing the accountsInvoices and other documents attached to each accounting voucher should be reviewedIf it is not compliant, it is necessary to contact the relevant handling personnel in time to obtain a legal and valid deduction voucher.
4.Current accounts: income and expenditure should be sorted out
Before the year-end closing, for the current year's accounts receivable, accounts payable and other current accounts and other book balances, enterprises should check clearly with the best business or customers, especially the accounts with a relatively large perennial transaction amountAttention should be paid to the amount and balance of its accounts
For long-term payables, it is necessary to pay attention to the accounts that have not been incurred in the current year, verify the account situation, and carry out follow-up treatment in a timely manner.
If there is an outstanding amount due, to pay attention to whether the payment no longer needs to be paid, whether it needs to be recognized as non-operating income;
If there is a situation where the accounts receivable cannot be recoveredIt should be recognized as a bad debt loss in a timely manner, and in accordance with the provisions of the enterprise income tax law, the supporting materials such as contracts, agreements or explanations should be prepared, so that the actual asset losses can be deducted before the enterprise income tax when the final settlement is made.
In particular, it is important to pay attention to the presence thereA situation in which a shareholder borrows money from a company but has not repaid it before the end of the year。If it is reflected in the books that the individual shareholder has personal loans and current balances in the company for more than one year, it should be dealt with in a timely manner to avoid tax risks.
Other financial-related considerations
1. Recognition of investment assets
1.Pay attention to the operation of the invested enterprises and avoid the investment being wasted
2.Obtain the financial statements of associates and joint ventures in a timely manner and confirm investment income
3.Obtain the fair value of transactions and trading financial assets in a timely manner, and accurately calculate profits and losses.
2. Reimbursement of expenses and acquisition of bills
1.In accordance with the accrual principle, the expenses of the current year are recorded in a timely manner to avoid the occurrence of expenses being recorded across periods.
2.According to the matching principle, the fees paid are allocated.
3.Pay attention to whether the balance of the estimated (calculated) and amortized expenses is reasonable.
4.For the expenses that have been incurred and booked, whether all the compliant bills have been obtained, and the responsibility for the bills that have not been obtained should be assigned to specific personnel.
3. Pay attention to tax treatment
1.Check the payment of taxes and fees in the current year: make a general analysis of the various taxes and fees of the enterprise in the current year, and then calculate the tax burden of the current year, compare it with the actual local situation, and make appropriate adjustments.
2.Check amortization and accrual: Check whether there are any accounting transactions that should be amortized in the current year and whether depreciation is accrued or not accrued.
3.Tax incentives: Some tax incentives end at the end of the year, so it is important to sort them outAt the same time, some policies may continue to be extended after expiration, so it is important to pay attention to the official announcement in time!If it is not extended, it should be adjusted in time.
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