Benefits of year-end closing and annual plan

The end of the year is a demanding time for management. So, it would be best if you wrapped up the year by doing a year-end closing process. Year-end closing lets you prepare financial statements that will give an organization a clear picture of your organization’s financial status.

Benefits of Year-End Closing

• It prevents you from creating accidental changes on transactions that can change account balances of the closed accounting period.
• Organizations should close books on time because if not done, this could result in a mismatch of accounts, which will cause trouble filing taxes.
• Year-end closing will help to assess the performance of the business.
• It highlights the weaknesses and gets rid of unknown performance.
• It will help to access last year’s data easily that incorporates details of every transaction.
• If there is no year-end closing, there will be no adequate analysis of the financial data.

Year-end reports will help you adjust the timing of earnings reports, and therefore you can minimize the negative seasonal impacts within industries. Therefore, organizations need to review and adjust all accounts to make sure that they correctly reflect the activities for the fiscal year. This process will also help you to do the annual planning of the organization in detail. Here we also present you the advantages of having an annual plan for your organization.

What is annual planning?

A yearly business strategy is a road map done for the benefit of an enterprise and its employees. This planning comprises the milestones that will help you move forward, aiding your business to achieve goals by the end of the year. In addition, this planning will assist in improving performance and reaching organizational goals. Therefore, it is essential to chalk out an annual business plan template and review the results from the previous year so that the management has some clarity while taking crucial decisions. 

Why annual planning is important

An annual business plan encourages management to set specific business goals based on its strategy and holds teams accountable for achieving goals. An annual plan also keeps the employees focused, stimulating them to be more productive. Annual planning provides employees with clarity in defining their roles and responsibilities. 

How will IMCC help in creating an annual plan?

SMART Goals

We will help draw SMART goals that will aid in clarifying your ideas, focusing your efforts, ensuring to use your time and resources effectively, and increasing your chances of business success. In addition, the SMART goals will help businesses plan ahead of the achievements and have a clear strategy for future operations.

Budget and financials

At IMCC, we will assist in planning projections for the next year, forecasting income and outlays. These predictions will help you prepare your organization for cash flow dips, identify financing needs, and determine the best timing for projects. You can also use these estimates to ascertain financing needs and make it easier to apply for a loan.

Timelines

We can also help you break your larger goals into smaller goals, set them on specific timelines, and include metrics that specify how successful you are in accomplishing your goals.

Clearly outlined expectations and responsibilities

We will assist in creating aspirational but achievable, with practical goals indicating which teams or departments are accountable for which part of the plan.

Contingency plans

We will help maintain a cash reserve and compare actual financial results to your estimates throughout the year.

Tools

We can help create an annual business plan template that manages planning efforts and IT solutions for business and strategy plans. At IMCC, we will plan out a work management platform with strategic planning tools that let your organization collaborate constructively, create content, and manage intricate processes. We will simplify the annual planning process, support you to adjust to market shifts through continuous planning, evaluate scenarios, and help your organization stay ahead of any business race.

With the right tools, strategies, and processes, you can create a well-devised and implemented an annual business plan and year-end closing that guarantees the year ahead is as per your expectations. Looking to make your year-end closing process and annual plan? IMCC lets you streamline all these processes. Get started by visiting www.infinitykw.co.