What to look out for at the end of the year?
17 December, 2019 by
What to look out for at the end of the year?
HERMES D.O.O., Jasmina Macur
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At the end of the fiscal year, we would like to highlight some things and procedures that need to be done and recorded before the end of the year.
Odoo • Image and Text 
Particular attention should be paid to inventory or annual inventory when inventorying assets or reviewing liabilities. This is not just a matter of inventories and fixed assets, but also the reconciliation of receivables and liabilities. The inventory aligns book states to actual status.

Inventory is not only a prescribed task, but can lead management to adopt new organizational measures and, consequently, to make the company more responsible and rational.

An important task is to check and reconcile the balance of liabilities and receivables with IOP forms.
It is necessary to focus on the ongoing investment maintenance of tangible fixed assets, such as: current maintenance, regular services, overhauls, replacement of consumables ... All of the above represent the running costs of the business.


We check the monthly invoices received (electricity, utilities, heating, telecommunications, accounting services…) to be credited for all 12 months, regardless of the date of invoicing (basic accounting assumption: accrual accounting).

It is also necessary to check that the general ledger includes all 12 payroll accounts, recourse calculations and that all additional benefits have been taken into account in our calculations. We compare the recapitulation of wages for the month of December with the reported payables in the general ledger.

We prepare statutory financial statements  of our company, which typically include the principal financial statements:
•    Income statement: The income statement includes all income, expenses and expenses incurred in the previous year.
•    Balance Sheet: This is an overview of the current balance of a company’s assets, liabilities, and how much it is to investors.
We can usefully use the information obtained from these reports to make some decisions at the end of the year. If the company's profits are higher than planned, then it may be time for some investment or employee rewards. In case the profit is lower than planned, it is time to adjust the company's budget for next year.

Have you still not paid the cost to suppliers for the work done in the current year?Maybe you still owe it to a project that has been completed? As a rule, it is necessary to complete the works that we perform or finish in the previous year without missing a payment, and thus arrange for settled claims.

The decision of individual companies to pay out bonuses or bonuses at the end of the year may affect the performance of the company itself and show its profitability. If you think your team deserves a performance award, the payoff of business performance will of course affect your final result.

It is advisable to back up your data, ie all relevant documents, customer information, including emails. If you are using the cloud software, make sure that the important files are stored properly, or save them to your hard disk or other external media.

At the end of the year, it's time to set goals and expectations for the next financial year. Create a plan for all the investments you want to make in the business, which will help your business become more profitable and ready for the challenges of next year.

Last but not least, at the end of the year, we also remember all that was good, and at the same time, we congratulate ourselves and set off with a positive energy towards the new year.
Odoo • Text and Image
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