The end of the calendar year is around the corner, and for companies that are required to complete an external audit, that involves a lot of extra tasks and to-dos. Now is the time to complete all account reconciliations, prepare everything that your auditors will need, and make sure all documentation is complete.
Not sure where to start? Here’s a comprehensive year-end checklist to reference:
- Gather all financial documents. This includes but not limited to: the general ledger, final trial balance, adjusting journal entries made during the year, check register (and copies of large checks), cash receipts, bank statements, credit card statements, loan statements, payroll reports, inventory records, sales reports, merchant statements, last year’s tax return, and any other records such as grants or tax exemptions.
- Review accounts receivable. Review the aging report and any outstanding customer invoices overdue, confirm that account balances are correct, record any bad debts, reconcile A/R records, and make adjustments.
- Review accounts payable. Check any outstanding invoices to confirm those vendor balances are correct, review the aging report, reconcile vendor statements, address any accrued expenses and liabilities, and make any necessary adjustments.
- Review fixed assets. Record depreciation expense for all tangible and intangible assets and updatedepreciation schedules.
- Value inventory. If you have inventory, you need to do a physical inventory count at year end and compare that with what is on the balance sheet. Adjust the inventory values as needed and review your valuation methods.
- Review payroll records. Review any changes made during the year, such as compensation and tax withholdings, and reconcile records with the general ledger and bank statements (as well as any payroll tax filings).
- Reconcile all bank accounts. Make sure the actual account balances match your accounting records and make any necessary adjusting entries.
- Reconcile credit card statements and loan balances. Make sure all payments and interest are recorded correctly.
- Review and reconcile all other accounts. That includes accrued expenses such as wages and taxes, and prepaid expenses such as any insurance policies.
- Prepare year-end financial statements. Compile the balance sheet, income statement, and statement of cash flows, and review them to ensure nothing jumps out as incorrect or missing.
- Collect all contracts and agreements. This might include agreements with vendors, clients, suppliers, and partners; lease agreements; loan agreements; etc.
That means it is time for your staff to take time to close the year and prepare for the year-end audit before your auditors arrive to complete field work.
The good news: TGRP’s accounting contractors can assist. If you need help tackling that prepared by client list for your auditors, catching up on reconciliations, preparing financial statements, or something else, our contractor services are a great solution.
Our highly experienced consultants can help you provide other support as well! If you need a CPA or high-level professional with experience with technical accounting issues, SEC reporting, process improvement, or another area. Our consultants can help you create budgets and forecasts, research issues to ensure you’re in compliance with generally accepted accounting principles or other regulations, set goals for next year, and much more.
Contact us at 303.789.1500 or send us a message. We’ll connect with you right away!
