Year-End Checklist

Here are twenty Critical Areas for Review at Year End:

  1. Accrue any year-end costs associated with payroll and post to payroll expense and payroll liabilities.
    1. Review your fringe benefits to ensure they are accurately reported for the year.
    2. Ensure all your employee information is correct for year-end reporting (W-2, W-3, 940, 941).
  2. Ensure all your vendor bills are posted by the year-end close date.
  3. Invoice your clients to finalize any outstanding unbillable revenue to date.
    1. Adjust outstanding receivables that are deemed to be uncollectible against bad debt expense.
    2. Review if any should be sent to an outside collection agency for assistance.
  4. Review your 1099 vendor information to make sure it is complete.
    (Check for Name, Address, Tax Id, Accurate coding of expenses as to whether they are eligible for 1099 tracking, etc.)
  5. Reconcile
    1. Your bank accounts.
    2. Your credit card accounts.
    3. Your loan accounts.
  6. Conduct a physical inventory count and record adjustments within QuickBooks inventory.
  7. Adjust any prepaid items, such as insurance, that need to be expensed.
  8. Journalize any other accruals for year-end that won’t be paid until the following year.
  9. Calculate and record amortization, depreciation, and any other necessary year-end adjusting journal entries.
  10. Review your asset and expense balances to ensure that all fixed assets have been accurately recorded for any purchases or selling of assets.
  11. Update any changes in employee or sales tax rates for the New Year.
  12. Ensure any prepaid deposits received from clients throughout the year are adjusted to earned revenue.
  13. Review and update the business plan to include changes anticipated for the upcoming year as needed.
  14. Prepare the budget for the New Year if not done so previously.
  15. Prepare year-end reports, W-2, W-3, 940, 941, 1096, 1099 and any other applicable forms and remit to appropriate parties.
  16. Check to see if any local licensing or permits need to be filed with year-end data.
  17. Review memorized transactions to ensure they are still applicable for the New Year.
  18. Print your year-end reports, which should include
    1. Profit & Loss Statement
    2. Balance Sheet
    3. Accounts Receivable Aging
    4. Accounts Payable Aging
    5. Budgeted vs. Actual
  19. Schedule a time to review the information with your client to see if the information seems reasonable to them. While we can prepare various data, it is always wise for us to review the information with them and discuss any variances we find.
  20. Ensure you have a regular backup process that includes verifying the data to help minimize any data loss. Consolidate and condense if needed for performance