Review These Records Before Closing the Year
Before closing the books for the year, check that activity is complete, balances have support and unresolved items are documented. Review the reporting cutoff and accounting basis, then coordinate significant adjustments with the responsible accountant or tax preparer. A calendar ending does not by itself make the records complete.
Confirm the transaction record is complete
Reconcile every relevant bank and card account through the final statement period. Review missing or duplicate transactions, unfamiliar deposits, outstanding checks and activity in payment systems. Check that invoices, bills and refunds around year end have been assigned to the appropriate period under the accounting method used.
Support the balances that carry into the new year
Compare loans with lender records and review receivables, payables, customer credits and owner transactions. Where relevant, gather inventory information, equipment purchase documents and payroll reports. Identify any unusual negative balance or unexplained opening equity amount. A balance that rolls into January without an explanation can continue to distort reports throughout the following year.
Document completion and remaining decisions
Provide the tax preparer with final reports, supporting schedules and a list of issues requiring tax or accounting judgment. Post approved adjustments with a clear record, save the final report set and use appropriate closing controls. If something remains unresolved, label it accurately instead of treating it as finished. The result should be a consistent starting point for the new year and a traceable record of the year just completed.