Checklist for entrepreneurs: what to check in accounting before closing the year

Accounting done only formally often leads to issues: stuck inventory, incorrect cost of goods, and unclosed documents. With Torgsoft, you see the full picture of your business. 

We prepared a practical checklist for an entrepreneur: what exactly to review in your accounting, where to find it in Torgsoft, and what actions to take to close the year with clear numbers and start the new period calmly.

Why you should review accounting at year-end

If you don’t review your accounting before the end of the year, in January you will face:

• distorted stock balances,
• lack of understanding of real profit,
• chaos in prices and purchasing,
• wasted time fixing old issues instead of working on new sales.

As a result, the year closes and issues get locked in: balances, costs, and current financial performance indicators carry over into the new period. To avoid this, we recommend going through the items in your accounting system and checking the most important business metrics. 

Torgsoft accounting review checklist

Product range and stock balances

1. Perform a full stocktake and align Warehouse status in the system with actual inventory. The goal is to identify mis-sorts, negative stock, items that “disappear” or appear, and frequent manual adjustments.
2. Analyze stock balances: by categories, by sell-by dates, by suppliers, and by storage periods. The goal is to identify dead stock and “excess” purchasing that freezes cash in inventory. 
3. Plan a strategy to clear dead stock — through promotions, discounts, and clearance sales.
4. Run sales analysis: sales analysis by product categories, revenue analysis by product categories, revenue analysis by manufacturers, revenue analysis by suppliers, ABC-XYZ analysis. The goal is to adjust the assortment: increase purchases of profitable items and remove unprofitable ones.
5. Calculate and adjust the minimum quantity for products (automatic stock level calculation) to control availability and quickly place supplier orders.
6. Based on product analysis: plan the assortment, remove items that do not sell (block them from supplier ordering), review the supplier list and decide whom to work with; if needed, stop cooperation or revise terms.
7. Review the pricing policy: using Price calculation by markup and exchange rate, revise and adjust markups, recalculate prices based on exchange rates, and check sharp gaps between purchase and selling prices. 

Financial indicators 

1. Partner balance: build a clear picture of customer debts and amounts owed to suppliers. 
2. Balance by financial analysis items — review cash flow by categories, identify which expense areas dominate, and make grounded decisions. Check unfinished transfers and unprocessed returns.

Staff management

1. Review user activity logs to identify systematic issues and adjust workflows overall or for specific employees.
2. Review access rights for employees.
3. If needed, review salary levels, bonus schemes, allowances for exceeding targets, or a penalty system for repeated administrative violations or major deviations from targets. 
4. Try a staff motivation system.

Working with the database in the software

1. Review the latest Torgsoft updates to stay aware of new modes and security improvements.
2. Close periods to speed up database performance and prevent unauthorized changes to documents from past periods.
3. Check whether database backups are created on Google Drive and where they are stored. 

Business optimization and scaling

Review the list of additional features of the software, for example, for:

• working with customer databases, 
• marketing messaging, 
• sales fiscalization via software ECR, 
• hybrid solutions for operating without internet and electricity, 
• expanding sales online and entering marketplaces, etc. 

You can try a trial version of an option for free for 30 days.

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What to do after the review?

After reviewing the state of the business and accounting, it is important not only to see issues but to lock in decisions with actions: 

• review the active assortment — lower prices for slow-moving items, remove them from sales, or write them off by using them in bundles; close or delete outdated items without carrying them into the new period
• make sure to document all actual write-offs of dead stock; 
• update prices and verify correct goods receipt and purchasing documents;
• finally — close debts in documents and reconcile payment discrepancies so the new stage starts with a clean, transparent, and controllable business picture.
• based on analytics in Torgsoft, plan a development strategy for the next year and calculate budgets for different business areas. 

It’s better to spend a few hours in the old year than a few weeks in the new one

Save this checklist and go through the items — one by one, without rushing.