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YEAR END CLOSING

 

A couple of weeks before 31st December is a very busy time for both entrepreneurs and accountants. Christmas, holidays, boxing day, new year and snow – all these are events that add up to a load of closing the books of accounts.

When we meet our clients in the month of December, they want to know how their business performed for the year. Most of the time they don’t get a straight forward answer, mostly because their books are not complete.

In order to complete the books and provide answers to our client as soon as possible after the end of the year, we have created a checklist that will make your year end closing super easy. Copy and fill this checklist and it will take care of the material aspects of the year end closing. There may be other items that you may consider important. Kindly add or delete anything based on your preferences.

This checklist is for a company that is based on selling products, dealing in multicurrency (US$ and CAD), keeping inventory of goods and using some cloud-based accounting portal such as Quickbooks online or Xero accounting.

Please contact us at www.mycfoportal.ca should you wish to engage us for accounting services in Mississauga. We provide accounting services and sources CFOs to your businesses.

 

CASH AND BANK BALANCES

 

Date Completed
Count cash in hand as of 31 December and compare it with cash in hand appearing in the trail balance.

 

Get the bank statements (in case your online books are not directly connected with bank account) and reconcile all the entries

 

SALES AND ACCOUNTS RECEIVABLE

Date Completed
Print a list of all the invoices issued during the year:

·         Compare it with the copy of invoice – check dates, products, prices, customer name, currency, invoice calculation (I am assuming that you print/store and keep a copy of invoices issued with you)

·         Correct all errors in the books. If you find a mistake in the invoice send the corrected invoice to the customers.

 

Print an aging analysis of Accounts receivable:

 

·         Review the accounts receivable and note any un expected names and amounts

·         Review of the accounts receivable and find out the balances more than 30 days

·         Send follow up letters / call customers with overdue balances

 

 

PURCHASES AND ACCOUNTS PAYABLE

 

Date Completed
Print account receivable aging list and review all the balances that are aged and are overdue. Note any exceptional names and amounts that you feel have been or should have been paid.
Print a purchase by products detail and review it with suppliers’ bills. Note down any differences in products quantity and prices. Correct any errors in the books

 

ASSETS AND BANK LIABILITIES

Date Completed
Print a detail of fixed assets and additions during the year and calculate depreciation
Prepare a list of outstanding bank liabilities as of 31 December 2018 and get confirmation from banks.

 

HST/GST RECONCILATION

 

Date Completed
Print copies of HST/GST returns filed during the year and compare them with the balance appearing the books

 

FOREIGN CURRENCY TRANSLATION

Date Completed
Revalue bank balances and receivable balances in foreign currency as of 31 December 2018. Most online books portal provide this facility

 

EXPENSES

 

Date Completed
Enter all the accruals of the expenses – December 2018 salaries, utilities, communication, etc.
Review your expenses Chart of Account and make sure it is in accordance with CRA’s GIFI

 

Keep copies of all the work in a separate file. It will make your live and lives of your accountants, auditors and tax consultants easy. 😊

This checklist is for a sample company based in Canada. This is not an accounting or financial advice and provided to you for information purposes only. Every business is unique and there may be other focus areas based on your business or preferences. We will accept no liability arising out of your using this list for your business.

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