As 2022 comes to a close, it’s important to take some time to review your finances and prepare for the new year. Use this 2022 year-end accounting checklist to make sure you’re on track for a successful 2023!
What is year-end accounting for businesses?
The 2022 Year-end Accounting Checklist for businesses lists the accounting principles and rules to be followed after the end of the year. It also includes a summary of the financial statements.
A detailed set of instructions and examples are given in the form of an audit checklist. This year-end accounting checklist for businesses in Cameroon is used by accountants to examine the financial statements.
When does the accounting year finish?
The accounting year in Cameroon usually runs from January 1 to December 31. If you have a company or a sole proprietorship in Cameroon, the accounting year is a time when you have to prepare and submit your documents for the financial year.
In the Cameroon, the business’s accounts are submitted to tax department on or before March 1st for the previous financial year. This means that the end of the accounting year is typically referred to as year-end, regardless of the time of year the company’s incorporation occurred.
However, companies that were created in July may choose to do it in the fiscal year they were created or wait for the next fiscal year.
2022 Year-end accounting checklist
What is accounting period?
An accounting period is the period over which your company will collect financial information related to your business. The period is generally either from a specified date to that date or from a specific date to a specified date.
For example, a company that began trading on 1st January would have a year-end that is the 31st December, whereas a company that started trading on July 1st may decide to push forward their year-end to December 31st the next year.
The length of the accounting period for a limited company and sole proprietorship in Cameroon is the same length as the tax year.
Record All Transactions
This includes all deposits, credits, debits, and transfers.
- Assure all accounts are finished. Check to make sure you have all your journal entries and all your transactions are listed.
- Write down all transaction amounts.
- Assure all records are in order.
- Book summary: Write a summary of all the company’s transactions for the accounting period. Compare your summary with the actual accounts. Review the accounts to make sure they are all correct.
- Check for any irregular transactions, vendors and customers, refunds, returned items, accounts payable, accounts receivable and all invoices.
Prepare your expenses
You’ve probably done this by now, but make sure you’ve done it for the year. This is really important, so you can make sure you’ve covered yourself and clear for the following year.
Read Also:
– What Should I Expense? Personal vs Business Expenses
They say…
When you’re preparing your year-end accounts, make sure you’ve done everything that’s required by the Tax Law, and you’re happy with your Statistical & Tax Returns. It’s also essential to keep in mind that the Tax Law states that you must file your Statistical & Tax Returns, STR, before March 15 of the previous fiscal year.
Read Also:
– What happens if you fail to file the statistical & tax return on time?
– 2019 Finance Law: E-transmission of the Statistical and Tax Returns in Cameroon
This means you need to file your accounts for the 2022 financial year on or before March 15, 2022. Make sure you’ve got your 2022 year-end accounting documents ready.
Do a bank reconciliation
This is optional, but if you have a bank reconciliation report that you’ve created earlier this year, it would make your life easier if you could just run it again. Every month, your bank is going to give you a bank reconciliation report that compares your bank balance with the balance that is listed on the statement that you receive from them.
This is a good time to make sure that the bank balance that you have listed on the statement is correct and that there are no additional transactions that should be added to the balance.
If you have any questions about reconciling your bank statement, reach out to the bank’s customer service department. Prioritize your bank reconciliation report. Make sure that you’ve identified ALL the transactions that you need to report on this reconciliation.
Chase unpaid invoices
You may have invoices that haven’t been paid yet, and you may have debits that haven’t been paid yet. These are all things that you need to go through the process of paying, and you will need to stay on top of this so that you don’t miss anything when the year-end rolls around.
It’s important to remember that if you fail to pay a bill, you won’t be able to claim that money back on your income taxes. To get this process out of the way and ensure that you don’t miss anything, it’s best to pay your bills as soon as possible.
With your bills paid and your expenses all in order, it’s time to move on to the next step in your accounting process.
Read more:
– Follow-up Unpaid Invoices – Year-end Accounting
– Required Components and Information for a Proper Invoice in Cameroon
Update fixed assets
Fixed assets such as vehicles, machinery, and equipment need to be updated for the year-end, so that the depreciation is taken into account.
Review your depreciation and amortization schedules. Make sure all amounts are correct, and all assets are reported at their fair market value.
It’s a good idea to wait until the end of the year to update your fixed assets, as this allows you to get an idea of how much you can depreciate and how much you can still use.
This is often a good time to check how much you have paid out in advance for your vehicles, or if you have any outstanding debts.
Check your income
Once you’ve done all of your expenses, it’s time to look at your income. You can use your income to validate the expenses that you claim each month.
You may find that you have expenses that you haven’t yet claimed, but the software will be able to show you the difference.
Take your inventory
Inventory is the process of entering all of your inventory items into the books. Once you have completed that process, you are ready to close your books for the year.
Verify payroll
If you’re using an accounting software to keep track of the accounts, you may be able to link payroll to your company records, making it easy to track expenses and job costs. This is a great way to get a better understanding of how much you paid out in salaries and wages for the year.
Prepare your revenues
The next step in the accounting checklist is to prepare your revenues. You can record sales, rents, and even loans as income, so it’s important to get them as accurate as possible before the year-end.
You can get a better understanding of your company’s income through the use of accounting software.
If you’re using a small business accounting software, you can set it to automatically generate a monthly, quarterly, or annual income statement for you.
Review your financial statements
Finally, it’s time to review your financial statements. Remember, this is where you’ll be comparing your 2022 year-end financial statement with the one you had prepared at the beginning of the year to make sure you haven’t missed any transactions.
Prepare your income statement and cash flow statement. Make sure all income and expenses are accurately reported and that the company’s net cash position is correct.
Make sure all financial statements are accurate and conform to OHADA Accounting Principles.
Now you can send your bookkeeping to your accountant. If there are any questions, please don’t hesitate to contact us.
Note that this checklist should be completed by the end of your month of December.
Make a note of important deadlines
When recording a year-end, it’s vital that you make a note of any important deadlines, such as year-end tax reporting and any other deadlines that may impact on how you record your business.
If you’re having trouble with your 2022 year-end financial year management, it may be worth looking into year-end accounting software to help make it easier for you to file your year-end accounts and keep on top of your finances.
Check for inaccuracies
It’s indispensable for you to check your year-end accounts against your books to ensure that everything is accurate and up to date. If you find something that is inaccurate, you need to attend to it right away.
How OpenHub Consulting can help
We understand that it’s not always an easy task to keep up with your finances year-round. That’s why our team is here to help. We know how significant it is to you to know that your finances are accurately reflected in all of your records, so we take a proactive approach to help you keep your money in line. Get in touch now!
Statistical & Tax Return Filing
You should be filing your company tax return about 12 months after the year-end. This is a legal requirement, so it’s essential that you file it on time. If you don’t file it, you’ll face a fine.
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