Year-end Accounting Checklist
Review your Profit and Loss Statement
Reviewing your Profit and Loss will allow you to see how you have been spending your money and to see that your expenses are properly categorized. The Profit and Loss statement that is sent to your tax CPA will be used to prepare your returns so you want to make sure this is correct to ensure that taxes are not under or over paid to the government.
Review your vendor list. For every vendor you have spent $600 or more for services, you will need to review if you are required to prepare and issue a completed 1099 form.
Reconcile your bank and credit card account
Reconciling your accounts, makes sure your financial statements for year-end match up with the information on these statements.
Reconcile Payroll and related expenses
A reconciliation of your quarterly payroll tax returns should be done to agree with the expenses recorded on your Profit and Loss statements for year end.
Review Accounts Receivable Aging and Invoicing
Are there outstanding invoices that you will never collect on and should be written off or by following up you will receive monies owed? Also, make sure you have invoiced for all services provided or products sold.
Physical Inventory Count
Taking a physical inventory count, if needed for your business, will allow you to match to reporting on your year-end financial statements.
Fixed Asset Review
Create a list of office equipment, computers, and office furniture you use in your business. Review the list to see that you are recording depreciation expense where appropriate.
Estimated tax payments
Review with your tax accountant where you are with the estimated tax payments you have made to date and what you should pay in for your final payment due i