Year-End Close Checklist
A year end close checklist for small businesses: final month close, inventory, provisions, tax, statutory accounts and auditor handover, step by step.
- Typical schedule yearly
- The checklist 5 sections, 25 items
- Variables
{{fiscal_year}}{{entity}}
Use this checklist once a year, after the last month of the financial year is closed. It builds on the regular month-end close and adds the work that only happens annually: stock counts, provisions, fixed asset reviews, tax calculations and the hand-over to your tax adviser or auditor.
Who owns it
The finance lead or controller owns the run. Many steps involve other people, such as warehouse staff for the stock count, managers for bonus accruals and the external accountant for the tax computation. Assign those steps by name early. Year-end work fails mostly because someone outside finance did not know they had a deadline.
Common pitfalls
- Starting in January. Plan the stock count, the cut-off dates and the auditor's dates in the last quarter of the year, not after it ends.
- Skipping the fixed asset review. Assets that were sold, scrapped or lost stay on the register for years unless someone checks them.
- Unsupported provisions. Every provision and accrual needs a calculation and evidence. Auditors and tax authorities ask for it.
- Reopening the year. Late adjustments after the accounts are signed are painful. Agree a hard close date with everyone who posts entries.
Running it in Runbook gives you a dated record of who did each step. That helps when the auditor asks how the close was controlled. Adapt this to your jurisdiction, legal form and reporting framework; it is a practical checklist, not legal or tax advice.
The checklist: Year-end close {{fiscal_year}} for {{entity}}
Plan
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Agree the year-end timetable with the tax adviser or auditor, including the date the accounts are due
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Announce the cut-off dates for sales, purchases and expense claims to all staff
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Schedule the physical stock count for the last day of
{{fiscal_year}}optionalOnly for businesses that hold inventory. Book counters and decide who supervises.
Final period
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Complete the normal month-end close for the last month of
{{fiscal_year}} -
Confirm bank, card and payment provider balances against year-end statements
Keep the PDF statements. The auditor or tax adviser will ask for them.
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Obtain balance confirmations for loans, leases and large supplier accounts optional
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Reconcile the stock count to the inventory ledger and post the adjustment optional
Year-end adjustments
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Review the fixed asset register: additions, disposals and assets no longer in use
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Post the full-year depreciation and check it against the asset register
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Review receivables and post a bad debt allowance or write-offs with evidence
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Accrue bonuses, unused holiday and other employee liabilities where your framework requires it
Get the inputs from HR or managers in writing, and file them with the calculation.
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Review and document provisions for warranties, legal claims or onerous contracts
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Review deferred revenue and prepaid expenses for items that span the year end
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Revalue foreign currency balances at the year-end rate optional
Tax and statutory
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Reconcile the annual VAT or sales tax return to the general ledger
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Prepare or receive the corporate income tax computation and post the tax charge
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Reconcile annual payroll totals to the payroll year-end reports and social security filings
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Prepare the draft financial statements and notes for
{{fiscal_year}} -
Compare the draft with the prior year and explain significant movements
Close and hand over
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Send the supporting file to the tax adviser or auditor
Trial balance, reconciliations, asset register, provisions and contracts in one shared folder.
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Post any adjustments agreed with the adviser or auditor
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Obtain approval of the financial statements by the board or owners
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Lock
{{fiscal_year}}in the accounting system and roll balances forward -
Archive the year-end file according to your record-keeping obligations
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Record lessons learned and update next year's timetable
Checklist as Markdown
Frequently asked questions
When should I start preparing for year-end close?
Start planning in the last quarter of the financial year. Fix the dates for the stock count, the cut-off and the meeting with your adviser or auditor, and clean up open reconciliations while the details are still fresh. The actual close work starts once the last month's transactions are in.
What documents does an accountant need at year end?
Typically the trial balance, bank statements at year end, reconciliations for the main balance sheet accounts, the fixed asset register, stock count sheets if you hold inventory, and support for accruals and provisions. Contracts for loans and leases and the payroll year-end reports are also commonly requested. Ask your adviser for their list, as it varies by country and company size.
Can a small business do the year-end close without an auditor?
Many small companies are not required to have an audit, but they still have to prepare annual accounts and tax returns. Whether an audit is needed depends on your country, legal form and size. Check the thresholds that apply to you, and use this checklist either way to keep the close organised.
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