In Pursuit of Profit
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For companies lagging behind, the financial cost of taking an extra 20 days to close their books can be steep, and for companies performing on par with the industry, the financial benefit of reducing their work by 10 days can be a huge advantage.
With year-end close coinciding with month-end and quarter-end close, time is not something that accounting staff can afford to waste. Thankfully, organizations that have an accounting policies and procedures manual, will typically have these activities detailed out to make it easy for accounting and bookkeeping personnel to follow.
However, for companies that do not yet have formalized policies, month-end and year-end close periods can be times of scrambling to prepare reports and reconcile accounts with resources that may or may not be readily available. Additionally, companies that have experienced significant accounting changes (like changing accounting software or switching accounting methods) may find that their previous close to-do lists need to be updated to reflect added work that must be done. Either can result in major headaches and drag out the close process, costing more time and tying up accounting personnel that has other important activities to complete as well like AP, AR, and payroll.
When you are preparing for year-end, use this simple accounting close checklist to ensure you don’t miss anything:
Develop a Closing Schedule
Pay Outstanding Bills
Reconcile AR & AP
Depreciate Fixed Assets
Handle Grants Correctly
Verify Employee and Contractor Information
Confirm Payroll Taxes
Prepare Reports & Financial Statements
Get Organized for Next Year
Evaluate Tax Strategies
Develop Next Year’s Budget
If you need help with closing your books, please reach out to us. We have a highly experienced team of bookkeepers and accountants to help you with month-end and year-end close activities as well as other short-term accounting engagements. We also offer part-time bookkeeping and accounting services for companies that need ongoing help. Contact us to find out more about how you can get the expertise you need and the flexibility you want!