Baan/LN Tip of the Week: Financial Year End – Have you done all you need to do?
I'm reposting this checklist for things to consider in order to finish out the current year, and plan for next year…
- Are your accounting records up to date so you can make a projection of how the current year will turn out?
- Are all account reconciliations 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 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 cash value of life insurance, loan balances, etc.?
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