Checklist for year-end accounting: How to close the financial year

For finance teams, the end of the financial year is a crucial period. To prepare their end-of-year accounts, statements, and financial reporting, finance professionals spend months immersed in the books.

The average accounting staff completes an annual closure in 25days, according to estimations. Month-end close and quarter-end reporting also fall around this time of year, which results in dramatically increased workloads and severely overburdened accountants.

Preparing and sticking to a defined workflow is one of the simplest strategies to lower stress and increase productivity during this time.

Here are some steps that will help you achieve a successful year-end closing cycle:

1.     Create a closing schedule 

Determine the crucial dates and the tasks that must be accomplished. These include the dates for reporting, processing data, and closing the calendar year. To make sure you don't forget any important deadlines, create a calendar with target dates. 

2.     Compile pending invoices and receipts

 To close the books you will need to assemble your unpaid invoices and receipts. You will need to make sure that the staff members are aware of the requirements and give them enough time to submit paperwork. If you don’t want to face delays, it would be better for you to use automation software that includes digital receipt capture. With the help of Dillali’s app, you will have better insights into all the pending invoices and receipts daily. 

3.     Analyze the asset accounts

Consolidate all cash accounts and document adjustment entries. The value of each asset that your business currently possesses is determined in this stage. Review prepaid spending and compare inventory accounts to physical stock, if necessary.

4.     Consolidate every transaction

Make that the proof from your bank statements, credit card statements, invoices, and receipts agrees with the transactions you have recorded. To be audit-ready at the end of the year, make sure to account for every dollar.

5.     Finish paying and collecting debts

Compare the amounts received or paid to the accrued amount. You must make sure that all financial transactions recorded for the company correspond to what happened. Any unpaid receivables at the close of the financial year should be recorded as credits on the income statement and debits on the balance sheet. Also, liabilities or accrual expenses should be shown for any overdue debts on the balance sheet.

To properly manage your money, it's essential to keep track of all your business bills. The Dillali app makes it simple to keep track of your spending and income. This will help to streamline processes in the future and make it easier to record and track expenses.

Get a jump start on the accounting for the upcoming year

You're off to a fantastic start if you follow the above checklist. And with nice spend management software, it get seven better. As a result, finance teams can conclude deals more quickly, make decisions about money.

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