Year-end is not finished when the bank reconciles.
Seven final accounting checks can make the difference between reports that merely close and financial information that is stable, explainable and ready to support.
This month’s perspective
Complete the last mile of the close.
Reconciled cash is essential, but year-end readiness reaches further. Temporary accounts, subledger differences, unsupported estimates and unexplained journal entries can still create questions long after December ends.
Year-end completion list
Move from “closed” to supportable.
- Protect reviewed periods. Set an appropriate closing date and limit unnecessary changes after reports have been distributed.
- Reconcile every applicable cash account. Include operating, credit card, escrow, trust, security-deposit and reserve accounts—not only the primary operating bank.
- Clear temporary accounts. Resolve suspense, uncategorized activity, clearing balances and unsupported opening-balance equity.
- Tie external systems to the ledger. Compare loan, rent-roll, owner, escrow and other subledger totals with the related general-ledger accounts.
- Review manual journal entries. Make sure every material adjustment has a clear purpose, correct accounts and useful memo.
- Document estimates. Record the reasoning behind accruals, reserves and proposed write-offs for the company’s CPA to review.
Article
A deeper year-end review
Seven overlooked accounting steps that cost firms money.
You can have every bank account reconciled and still not be fully ready for the company’s CPA, lender, owners or other authorized reviewers.
The featured article explains the less-visible steps that protect prior periods, resolve catch-all accounts, connect operational systems to the ledger and create a more efficient year-end packet.
Read the complete articleA stronger handoff
Give your CPA organized information—not a scavenger hunt.
A concise year-end packet can reduce repeated questions and help the company’s tax professional focus on review, planning and return preparation rather than rebuilding the bookkeeping history.
Final financial statements
Balance Sheet, Profit & Loss, trial balance and other agreed year-end reports.
Reconciliations and schedules
Bank, debt, escrow, intercompany and subledger support for important balances.
Assumptions and changes
Explanations for estimates, major transactions, ownership changes and system migrations.
Close with confidence
Start January with dependable financial information.
If year-end still contains unexplained balances, incomplete reconciliations or missing support, now is the time to identify what is urgent and create a practical completion plan.