Accounting: Year End Wrap Up
It is that time of year to wrap-up your accounting and prepare for 2015. Is your accounting ready for Uncle Sam? Do your ending balances in the temporary accounts begin 2015 with zero balances? The checklist below contains some of the important items that need your attention to ensure you are ready to submit your tax return with no surprises.
Reconcile all bank, credit card and petty cash accounts
Reconciling is a matching process that ensures the accuracy of your accounts. The petty cash account should be replenished so the amount on hand is equal to the balance in the account and all disbursements are recorded.
Make year-end adjusting entries
Accrued Revenues
Revenues/Receivables have been earned, but the invoices have not yet been processed
Accrued Expenses
Expenses/Payables have been incurred, but the invoices have not been processed.
Deferred Revenues
Currency received in advance of being earned
Deferred Expenses
Currency paid for future expense
Depreciation Expense
An asset purchased and cost allocated to expense in its useful life periods
Close the books
Set a closing date to limit changes to prior year data
Adjust Retained earnings/Owners capital account
Close out the income into the retained earnings section of the financial statement.
Review fringe benefits that need to be reported on Form W-2
Taxable fringe benefits are considered compensation and must be reported on the W-2 such as bonuses, vacation, personal use of an employer-provided vehicle, excess moving expenses paid, group term life insurance in excess of $50,000, clergy housing cash.
Take a physical inventory and reconcile with book inventory
Count all inventory and compare it to what should be on hand according to the accounting records.
Print financial reports
Print the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Retained Earnings/Owner’s Equity
Print and file information returns
See General Instructions for Certain Information Returns on the IRS.gov website.
Due dates. File Forms 1097, 1098, 1099, 3921, 3922, or W-2G on paper by February 28, 2017, or March 31, 2017, if filing electronically. File Forms 5498, 5498-ESA, 5498-QA, and 5498-SA by May 31, 2017. File Form 1099-MISC by January 31, 2017, if you are reporting nonemployee compensation in box 7.
Adjust Retained earnings/Owners capital account
This blog is not meant to offer legal or comprehensive advice. You should call our office or schedule an appointment for questions regarding your unique situation.
