A year-end close checklist that makes the audit shorter
Auditors move faster when the books are closed properly. Reconcile, count, review and document before they arrive.
By HMG Editorial Team · Published
Reconcile everything that holds money
Reconcile every bank, mobile money and petty cash account to the year-end statement, and explain each reconciling item. Unexplained differences are where audit questions start.
Agree supplier balances to statements and review customer balances for anything old or disputed. A clear aged debtors list helps both the audit and your cash flow.
Count, confirm and cut off
Count stock at year-end and record the count sheets, and check that the fixed asset register matches the assets you actually hold. Remove items that were sold, scrapped or lost.
Make sure sales and purchases are recorded in the right year. Invoices raised or received around the year-end date are a common source of adjustments.
Review and document
Record accruals and prepayments, review payroll and statutory deductions against the returns filed, and reconcile tax balances to the iTax ledger. Prepare a short file with schedules for each balance sheet line.
Agree the timetable with your auditors early and nominate one person to answer queries. A closed, documented set of books keeps the audit focused on judgement rather than searching for paperwork.
This article is general guidance only and is not individual tax, legal or accounting advice. Rules change; confirm your position with an HMG consultant before acting.
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