Came across an article online from Lauber CFO’s, and thought I would share. Here is a checklist for things to consider in order to finish out the year and help you plan for 2016:
- Is your accounting records up to date so that you can make a projection of how the current year will turn out?
- Are all account reconciliations currently up to date to facilitate the closing of the books after year-end?
- Are there accounts receivable that should be reserved for or written off prior to the end of the year?
- If your business carries inventory, do you need to plan a physical count as of the end of the year?
- Has depreciation on your fixed assets been recorded during the year? Have you considered depreciation on current year additions?
- Have all new asset purchases and bank loans been recorded on your books?
- Are there any liabilities, for example, pending legal actions or warranty issues, which will need to be recorded prior to the year-end?
- Do you have a plan in place to properly “cut-off” revenue at year-end to properly match revenue and expense?
- Will there be bonuses, profit sharing contributions, or discretionary retirement plan contributions paid prior to the end of the year? How will these payments affect cash flow?
- Will you be in compliance with your bank covenants at year-end?
- Do you need to make arrangements to receive statements as of the end of the year for the cash value of life insurance, loan balances, etc.?