It’s that time of year again! Before we know it, the holidays will have come and gone, and we will be entering a new year. As you are preparing for all the new year has to offer, and for your accountants, here are some tips to stay on top of closing out your year-end.

Catch up on bank reconciliations

  • Ensure the preceding 11 months have been reconciled.
  • This includes – cash, credit cards, loans, and lines of credit.
  • Investigate older reconciling items (i.e. – outstanding checks written 6 months ago).
  • Complete the final month’s reconciliations in the new year, once you receive statements.

Clean up accounts receivable

  • Send and record invoices for everything you are able to bill in the final month.
  • Aggressively collect on any outstanding receivables that you are able to.
  • Investigate older items on your receivables aging:
    • Make efforts to resolve and collect on long-outstanding items.
    • Determine whether write-offs are necessary.

Clean up accounts payable

  • Enter any invoices received into payables.
  • As with receivables above, review the accounts payable aging.
    • Pay particular attention to older items.
    • Prioritize payments of vendor invoices on your aging.
  • Consider significant unbilled charges possibly requiring accrual.

Review year-to-date payroll

  • Reconcile payroll reports to the general ledger.
  • Review drafts of payroll tax filings for the year.

Perform year-end physical inventory counts

  • Physically count inventory at all locations, as close as possible to year-end.
  • Adjust inventory balances for these counts.

Perform a top-level financial review

  • Review the balance sheet and P&L.
  • Try to step back from getting down in the weeds to give it the eye-test.
  • Benchmark against last year, or a current year budget-to-actual report.
  • Look for unexpected relationships warranting a deeper dive.

Gather questions for your accountant

  • Compile a list of questions and action items that you would like to discuss when you meet with your accountant.

Contact Us with Your Questions

If you have questions or need help with getting your books in order at year-end, contact our professionals at The Innovative CPA Group at 203-489-0612.