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 electronically through the FIRE System by March 31, 2015. File Forms 5498, 5498-ESA, or 5498-SA by May 31, 2015. In general, the recipients must receive their statements posted by January 31 or February 15 or on a website accessible to the recipient through October 15
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This blog is not meant to offer legal or comprehensive advice.  You should consult a tax professional for questions regarding your unique situation.