Bookkeeping Year End Tasks Template
Automate year-end bookkeeping tasks by tracking account reconciliations, payroll processing, accruals and prepayments, inventory valuations, and financial statement preparation. Ensure timely completion of annual accounting requirements.
1. Review Financial Statements
2. Reconcile Bank Accounts
3. Review Accounts Payable
4. Review Accounts Receivable
5. Review Inventory
6. Review Tax Liabilities
7. Review Employee Benefits
8. Review Travel Expenses
9. Review Depreciation
10. Review Accruals
11. Prepare Financial Statements
12. Review and Approve Financial Statements
13. File Tax Returns
1. Review Financial Statements
The first step in the financial analysis process is to review financial statements which provide a snapshot of an organization's financial performance over a specific period. This includes reviewing balance sheets, income statements, and cash flow statements to gain insight into the company's financial position, revenue, expenses, and cash generation. The financial analyst will examine these statements for any discrepancies or unusual transactions that may indicate potential issues within the organization. Additionally, they will verify the accuracy of the financial data by cross-checking it with other relevant sources such as tax returns and external reports. This step is crucial in identifying areas where improvement is needed and in making informed decisions about resource allocation and investments.
2. Reconcile Bank Accounts
Reconcile Bank Accounts involves verifying the accuracy of bank account transactions by comparing them to the company's accounting records. This step requires reviewing statements from the bank, checking for any discrepancies or errors, and making necessary adjustments to ensure that the financial reports are accurate and up-to-date. The process may involve reconciling debit and credit card transactions, as well as other banking activities such as loans, investments, and fees. It is essential to reconcile bank accounts regularly, usually at the end of each month or quarter, to prevent errors from compounding and affecting future financial statements.
3. Review Accounts Payable
Review Accounts Payable is a critical step in the accounts payable process. During this stage, the accountant or responsible team member reviews all outstanding invoices, verifies their accuracy, and ensures they are properly coded and assigned to the correct expense account. This involves checking for any discrepancies, omissions, or errors in vendor information, invoice dates, or amounts due. The reviewer also checks if all necessary supporting documents, such as receipts or delivery confirmations, have been attached to the invoices. Additionally, this stage includes researching and resolving any discrepancies or issues that may have arisen during the review process. The goal is to ensure accuracy and completeness of accounts payable transactions before moving forward with payment processing.
4. Review Accounts Receivable
Review Accounts Receivable - This step involves verifying the accuracy of outstanding invoices and payments due from customers. The accounts receivable process entails reconciling customer balances with the company's financial records to ensure all transactions are properly recorded. It also includes checking for any discrepancies or unapplied payments that may have occurred during the billing cycle. Additionally, this stage allows for identifying potential issues such as payment delays, invoice errors, or outstanding credit memos that need to be addressed by the accounting team. By reviewing accounts receivable, businesses can maintain accurate financial records and make informed decisions about customer relationships and future business operations.
5. Review Inventory
During this step, the current inventory levels are compared to predetermined minimum thresholds or maximum capacities, ensuring that stock levels remain within acceptable parameters. The review process also considers factors such as product obsolescence, expiration dates, and potential overstocking or understocking scenarios. Any discrepancies or anomalies identified during this assessment inform subsequent steps, enabling adjustments to purchasing, production, or storage strategies as necessary. This review helps maintain an accurate and up-to-date inventory record, facilitating informed business decisions regarding stock management and minimizing risks associated with excess or insufficient stock levels.
6. Review Tax Liabilities
In this step, carefully review the tax liabilities associated with the financial transactions to ensure accuracy and compliance with relevant laws and regulations. This involves examining the various taxes owed, including federal, state, and local taxes, as well as any applicable tax credits or deductions. Verify that all necessary tax forms and documentation are completed accurately and in a timely manner to avoid penalties or fines. Evaluate the potential financial impact of tax liabilities on cash flow and overall business operations. Consider consulting with a tax professional or accountant if needed to ensure that tax obligations are met correctly, and any disputes or issues are addressed promptly.
7. Review Employee Benefits
The seventh step in this employee onboarding process involves reviewing the offered employee benefits. This includes all company-provided policies such as health insurance, retirement plans, paid time off, and life insurance. The goal here is to ensure that the newly hired employee understands what benefits they are entitled to and how they can utilize them effectively. Reviewing these benefits also provides an opportunity for HR to address any questions or concerns the employee may have about the company's policies. It's essential to provide this information in a clear and concise manner, possibly through an online portal or during a one-on-one meeting with the HR representative
8. Review Travel Expenses
Review travel expenses involves verifying the accuracy of all related documents and invoices submitted by employees or department heads for reimbursement. This includes hotel bills receipts, flight tickets, meal allowances, and other expenses incurred during business trips. A thorough examination is made to ensure that the claimed costs are legitimate, reasonable, and supported by relevant proof. Any discrepancies or anomalies are investigated promptly and resolved in accordance with company policies and procedures. The review process also takes into account tax laws and regulations applicable to the particular country of travel. Once verified, expenses are either approved for reimbursement or returned for correction as necessary.
9. Review Depreciation
Review Depreciation: In this final stage, accountants assess the accumulated depreciation for each asset to ensure accurate financial reporting. They compare the initial cost of assets with their current book value, taking into consideration any upgrades or replacements made during the accounting period. Any discrepancies are rectified, and the revised depreciation is updated in the ledger. This step helps maintain consistency across the organization's accounts and ensures compliance with relevant tax laws and regulations. The accountant must also verify that all assets are accounted for and their respective depreciation rates applied correctly to ensure fairness in financial reporting.
10. Review Accruals
Review accruals by verifying that all accrued expenses have been properly recorded in the general ledger and that the company's policy for accrual accounting is being followed. This includes checking for any errors or omissions in the recording of accruals and ensuring that the accruals are correctly matched to the related revenues. Verify that the accruals are accurately estimated and recorded at the time they become payable, rather than waiting until the actual payment is made. Also review the calculation of accrued expenses, such as salaries, wages, and rent, to ensure that it is accurate and in compliance with accounting principles
11. Prepare Financial Statements
This process step involves aggregating financial data from various sources into comprehensive financial statements. The objective is to provide accurate and reliable information about the organization's financial position, performance, and cash flows. Relevant data includes income, expenses, assets, liabilities, and equity, which are sourced from accounting records, ledgers, and other relevant documents. The financial statements should be presented in a clear and concise manner, adhering to established accounting standards and conventions. Any discrepancies or irregularities must be investigated and addressed before the preparation of final financial statements is completed.
12. Review and Approve Financial Statements
This process step involves reviewing and approving financial statements to ensure accuracy and compliance with regulations. The approver assesses the completeness and validity of the financial data, including revenues, expenses, assets, liabilities, and equity. They verify that all transactions have been properly recorded and accounted for, and that the financial statements align with the organization's accounting policies and procedures. Additionally, the approver evaluates the financial performance against established benchmarks and goals, identifying areas for improvement. Upon satisfactory review, the approver approves the financial statements, which are then finalized and made available to stakeholders. This step ensures the integrity and transparency of the financial reporting process.
13. File Tax Returns
The employee reviews and prepares all necessary tax-related documents, including W-2 forms and any additional deductions or credits they are eligible for, as per IRS guidelines. They also ensure that all supporting documentation is accurate and complete. Next, they submit their tax returns online or by mail, taking care to meet the relevant filing deadlines. If required, the employee may also make estimated tax payments throughout the year, in anticipation of their annual tax liability. After submitting their tax return, they wait for any refund or notice from the IRS, which may indicate changes to their income tax situation or require additional documentation. The entire process is typically completed within a few weeks to a month after the tax filing deadline.
