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  • Writer's pictureASCEND Tax & Accounting

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 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.

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