Tea Memishishi’s Post

It is December📅 and time for year-end closing. What is year-end closing? It is the process of reviewing, reconciling, and verifying that all financial transactions and the story behind those transactions are aligned and totals are correct. This involves reviewing revenue by revenue source, business expenses, list assets, total receivables and payables, and more. Here is your year-end accounting checklist⤵ ✅Prepare a list – identify year-end closing tasks and the dates by which you must complete those tasks ✅Review outstanding Sales invoices – communicated to you clients clearly what is their total outstanding and provide details with the list of invoices due ✅Review payable Purchase invoices – plan the payment, ensure that you are within the credit terms agreed with the supplier ✅Review Fixed Asset accounts – make sure that your fixed asset list is correct and verified with actual items ✅Reconcile Bank / Cash accounts – ensure that your bank balances are matching with your recorded balances. Count petty cash balances – actual balance should match your petty cash report, document it and sign off. ✅Perform Stock count – make sure that your actual stock / inventory matches your recorded stock / inventory, document it and sign off. ✅Review Accrued expenses – make sure that the list of accrued expenses does not include supplier invoices that are already paid or ready to be paid. ✅Review Prepaid expenses – make sure that prepaid expenses are correctly charged to respective periods. ✅Compare your current year balances with last year’s numbers – make sure that the differences between the two years are clarified. ✅✅✅or hire a Bookkeeper who keeps all of these updated for you throughout the year.