Year-end close shouldn't be a last-minute scramble. Companies that arrive at their tax filing in good order are almost always the ones that reviewed their information early, not the ones with better accountants.
1. Reconcile before the year ends
Bank accounts, receivables and payables should be reconciled month by month, not all at once in January. A backlog of reconciliations hides errors that are far cheaper to fix when caught early.
2. Review deductible expense classification
Not every expense recorded as deductible qualifies under current regulations. Reviewing this before close avoids forced adjustments on the filing and lowers the risk of later observations.
3. Validate inventory and fixed assets
A physical inventory count and a review of the fixed asset register, with depreciation up to date, are the foundation for financial statements that actually reflect the operation.
Starting this process in November, not March, is what separates a calm close from an improvised one.