A comprehensive year-end accounting checklist is crucial to ensure a smooth transition into the new fiscal year and to meet financial reporting obligations. Here’s a generic checklist that you can tailor to fit the specific needs of your business:

FINANCIAL REVIEW

1. Reconcile Bank Accounts:

   • Ensure all transactions are accurately recorded.

   • Investigate and resolve any discrepancies.

2. Review Accounts Receivable:

   • Confirm outstanding invoices and follow up on late payments.
   • Consider writing off uncollectible accounts if necessary.

3. Assess Accounts Payable:

   • Confirm that all supplier invoices are recorded.
   • Schedule payments to vendors.

4. Inventory Valuation:

   • Conduct a physical inventory count.
   • Reconcile physical counts with book records.
   • Adjust the valuation for any discrepancies.

5. Fixed Assets:

   • Update fixed asset records for any acquisitions or disposals.
   • Consider depreciation adjustments.

6. Loan and Debt Review:

   • Confirm outstanding loan balances.
   • Check interest rates and payment schedules.

FINANCIAL STATEMENTS AND REPORTING

1. Income Statement (Profit and Loss):

   • Review revenues, expenses, and net income.
   • Analyze trends and variances.

2. Balance Sheet:

   • Confirm assets, liabilities, and equity balances.
   • Verify accuracy of retained earnings.

3. Cash Flow Statement:

   • Analyze operating, investing, and financing cash flows.
   • Evaluate cash position and liquidity.

4. Budget vs. Actual Analysis:

   • Compare actual financial performance against the budget.
   • Identify areas over/under performance.

COMPLIANCE AND DOCUMENTATION

1. Tax Preparation:

   • Gather necessary documentation for tax filing.
   • Work with tax professionals to ensure compliance.

2. Employee Benefits and Payroll:

   • Confirm employee benefit records.
   • Ensure accurate payroll reporting.

3. Business Registrations and Licenses:

   • Review and renew business registrations and licenses.

CLOSING ENTRIES AND ADJUSTMENTS:

1. Accruals and Deferrals:

   • Make necessary adjusting journal entries for accruals and deferrals.

2. Prepaid Expenses:

   • Review and adjust prepaid expense accounts.

3. Depreciation and Amortization:

   • Update depreciation and amortization schedules.

INTERNAL CONTROLS:

1. Review Internal Controls:

   • Assess the effectiveness of internal controls.
   • Implement improvements if needed.

2. Employee Access and Permissions:

   • Review and update access permissions for financial systems.

MISCELLANEOUS:

1. Documentation and Record Keeping:

   • Organize and store financial records for easy retrieval.
   • Archive and retain necessary documents.

2. Audit Preparation:

   • If applicable, prepare for external audits.
   • Provide auditors with required documentation.

3. Business Goals Review:

   • Evaluate financial performance against the previous year’s goals.
   • Set new financial goals for the upcoming year.

This checklist provides a broad overview, and you may need to adapt it based on the specific needs and industry requirements of your business. Let ProNexus help your team’s bandwidth and meet your deadlines for year end reporting, 1099’s, annual audits, and more!

Send us a message to setup a free year end analysis and for help with a more tailored checklist suited to your specific needs.

ADDITIONAL RESOURCES

• Year-End Accounting to Help Your Organization: The Power of Expertise

• Year-End Audit...Reasons You May Need Assistance

• Experienced Consultant Keeps Tax Department Running Smoothly During Turnover