The end of a financial year is an essential time for all finance teams. Every year, financial professionals stay deep in books to ensure that all their end-of-the-year accounts and statements are perfect. It has been estimated that all these tasks take almost 25 days to complete, from the start of the process to the end. 

It is also important to note that this time also matches with month-end closing and quarter-end reporting, which means that there is a heavier workload on all financial professionals and accountants. 

One of the simplest ways for people to reduce stress and enhance productivity is by preparing a schedule and following the set workflow. To ensure that you are also prepared to tackle the year-end accounts, and make year end accounts preparation services also provide a complete checklist of the same. 

What is the meaning of year-end closing?

Year-end closing, also called “closing the books, is a process that entails not only the review and reconciliation of but also the verification that all financial transactions and aspects of the company’s ledgers from the past financial year are summed up. 

It necessitates calculating the total amount of business expenses, income, revenue, assets, investments, equity, and more. The purpose is to lay out a final financial statement that is subject to an external audit and is to be kept as part of the company’s official financial records.

A Complete Year-end Accounting Checklist 

1. Prepare a closing schedule 

All year end accounting services start the process by identifying the important dates and the activities that must be completed by each. This involves creating reports and processing data according to deadlines. You should create a calendar with your end dates to ensure that you do not miss anything. 

1. Collect outstanding invoices & receipts 

These documents are necessary for closing the books. It is important to ensure that employees are aware of the requirements and are given sufficient time to submit their documents. Anticipate potential delays. To expedite this process, consider utilizing automation software that features digital receipt capture, allowing employees to upload their paper expense receipts immediately.

1. Examine asset accounts

Reconcile all cash accounts and document any adjusting entries. If applicable, compare inventory accounts with the physical stock and review prepaid expenditures. This step is crucial in determining the total value of all assets currently owned by your company, as indicated by year-end accounting services.

1. Reconcile all transactions 

You should also make sure that all your transactions are recorded to match credit statements, invoices, bank statements, and even receipts. Make sure that you take care of all accounts and every penny for the year-end accounts. 

1. Finalise Accounts Receivable and Payable 

You should also compare the amounts that you have received and paid. Make sure that all the money coming in or going out of the business is recorded accurately. 

1. Accrue accounts receivable and payables 

Any receivables and unpaid debts that you have should be added to your balance sheet. Accounts receivable will be added as credits to the income sheet, whereas debts will be listed as liabilities. 

1. Adjust grants and entitlements 

Lastly, you should also add any grant or entitlement that you have received during the financial year. These can be anything, such as government contributions or special tax exemptions. 

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