Year End Bookkeeping Checklist For Small Business • Cleveland Bookkeeping Services

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Year End Bookkeeping Checklist

Year End Bookkeeping:

Year end bookkeeping is never fun. There is so much to do. Often times its hard to know where to begin. Todays article will be very helpful for bookkeepers on all levels to close the year:

Bookkeeping Checklist:

Reconcile all bank accounts.
Credit cards need to be reconciled.
Loans have to have the principal and interest split between the income statement and balance sheet. ( Interest – PL) Principal B/S.
Verify the income is correct. Sales adds up to amount invoiced, or what is on the point of sale system,
The General ledger shows accurate recording of expense categories.
Cash transactions are accounted for.
Owner draws and distributions are correct.
Inventory is tied out.
Payroll matches the W3.
Accounts receivable is accurate.
Credit memos are issued for write offs as directed by management.
Undeposited funds equals the amount of the next deposit.
Duplicates are removed from all bank account ledgers.
Intercompany entries tie out between business units.
Travel and mileage is accurate.
Personal transactions are not showing in the financials . They are coded to distributions.
Retained earnings has not been altered from the prior year.

The main account to balance is undeposited funds:

A closer examination of undeposited funds is in order. This account is critical it shows amounts received but not deposited at the bank. This means money is paid to your company but it never makes it to the bank,

This is a problem. All money needs to be deposited.

Many times it is not zeroed. Reasons include:

Problems with software making the bank deposit.
Inaccuracies matching the actual bank deposit.
Duplicates.

Once this is sorted out your on your way to ensuring accounts receivable is accurate.

Summary:

So far we have balanced all of the banks, cards and loans. Receivables and undeposited funds match. Payroll matches the W3.Sales is verified. Inventory is accurate.

There is one more step.

Take a look at A/P ( Accounts Payable) is it accurate? be certain that it is accurate. Run a vendors payable list for verification.

These items are not comprehensive. They will enable you to close the year and turn it over to your CPA for review.

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