Financial statements and tax returns – start early

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Planning can be everything when it comes to finishing the financial statements and tax returns early. A continuous process throughout the year can ease the burden and make the process smoother and less time-consuming.

Planning is key
The process of gathering documentation and composing the financial statements and tax returns can often be a long and inefficient process. It can distract employees and thereby move focus from other important tasks, and making it a continuous planned process is therefore key. Planning minimizes uncertainties and prevents wasting employees’ valuable time, but it also facilitates coordination while optimizing the utilization of resources.

Focus on deadlines
Deadlines are necessary to ensure that work is performed on time. When it comes to the composing the financial statements and tax returns, departments may rely on each other for documentation. Delay in one department may therefore affect another department and create a domino effect of delay. Employees should therefore always feel accountable for meeting their deadlines. It is important to make realistic deadlines, taking all steps and challenges into consideration, as an unrealistic deadline could demotivate employees and undermine the overall purpose.

Make your objectives clear
A prerequisite for a streamlined process is effective and informing communication – employees should have no doubts in relation to tasks and deadlines. The following four points should always be clear to employees in order to ensure an efficient process without errors:

  • What should be done?
  • How should it be done?
  • When should it be done?
  • And at last, who should it be reported to?

A solution to optimize the process

Using internal controls to ensure a continuous process in preparation for the financial statements and tax returns can help ensure that all tasks are performed in due time. Standardized controls and automated workflows have eased the workload and reduced the risk of error as well as the time spent. The streamlined workflows have meant that employees’ valuable time could be spent on other projects.