Year-End Checklist - Summary
©2016 Jay Lode, CPA, PLLC

Use this checklist to ensure the accuracy of accounting data, financial reports and tax reports. Examine
the totals for each general ledger account, their relation to financials as a whole for the year and as
compared to the previous year (PY), and examine transaction details in certain accounts. Every company
has unique issues. This checklist provides a general overview. See Detail checklist for more crosschecks.
Balance Sheet: Reconcile all Balance Sheet accounts to their related statement or known support

Checking and savings accounts are reconciled to bank statements

Accounts receivable is reviewed for accuracy

Investment accounts are reconciled to brokerage statements

Inventory is adjusted to agree to the actual year-end inventory count

Fixed asset account changes are tied to support

Other assets are tied to support

Accounts payable is reviewed for accuracy

Credit card accounts are reconciled to statements

Loans payable are reconciled to loan statements

Sales tax liability and other liabilities are reviewed for accuracy and tied to support

Owner equity accounts are examined for accuracy; draws are not expensed
Profit and loss statement:

Income accounts are examined to ensure they are accurately stated; owner investments are not
recorded as income

Cost of Sales (or Cost of Good Sold) is reviewed for accuracy

Expense account balances are examined for accuracy and completeness

Expense accounts are examined for equipment purchases that should be capitalized and
depreciated. (typically $500 per item/invoice for tax purposes)

Expenses paid on behalf of the owner(s) are separate from operating expenses or are recorded
in equity accounts on the Balance Sheet.

Out of pocket expenses are recorded and reimbursed according to company policy/practice

Depreciation and amortization is recorded and ties to tax depreciation schedule

Payroll expenses and employee benefits expense tie to respective compliance reports

All vehicle mileage logs, sales invoices, expense receipts, customer and vendor contracts,
expense logs etc. are retained on file.

Sales tax exemption forms are retained on file