Year-End Close Check List

By: Dave Bodiford - Supervisor, Assurance & Advisory - Scott and Company LLC

Audits go more smoothly when the prep starts early — so our Assurance and Advisory team put together a year-end close checklist to take the guesswork out of getting ready. It lays out the accounts, schedules, and documents that come into play at year-end, all in one place. If we handle your audit, it's a handy roadmap for the weeks ahead. And if we don't, consider it a look at how we work — and a head start on a smoother close, no matter who you partner with. Please see the checklist below.

• • Close your books and reconcile all accounts.
  • Complete bank reconciliations for all bank accounts and credit cards.
  • Adjust out any clearing accounts.
  • Ensure any intercompany balances due to or from related parties match on each set of books.
  • Prepare aged accounts receivable and accounts payable schedules.
  • Update your fixed asset schedule with additions and disposals.
  • Update any prepaid expenses, including insurance policies paid in advance on a basis other than the calendar year.
  • Record investment earnings and reconcile to brokerage statements.
  • Accrue all known year-end liabilities, including:
    1. Payroll related balances, including accrued payroll, accrued leave, and entries for any bonuses that might be paid after year-end
    2. Adjust revenue for any deferrals of revenue received but not yet earned.
  • Make adjustments for right-of-use assets and liabilities for any active long-term leases.
  • Count and document inventory (if applicable).
  • Adjust any donor-restricted balances (if applicable).
  • Collect board minutes, contracts, and loan statements.
  • Review all closing entries made and check that balances agree to supporting documentation.
  • Review all balance sheet balances for reasonableness and agree to any applicable supporting documentation.
  • Designate a point of contact for the audit team.

A well-prepared year-end close is one of the best investments you can make in an efficient, on-time audit. By working through this checklist as you approach your year-end, you can ensure cleaner books, minimize last-minute surprises, and position your organization for a smoother process from start to finish. Whether we have the privilege of serving as your audit partner or you are simply seeking a more effective way to prepare, our Assurance and Advisory team is here to help. To discuss how we can support your year-end close and audit readiness, please contact our team at your convenience.