Year-end closing transforms raw financial data into accurate statements ready for tax filings like 941, 940, 1120S, and Schedule K-1. This comprehensive CPA-guided checklist covers timelines, reconciliations, adjustments, and tax prep to ensure compliance and uncover insights. Businesses using Bookkeeping Services in Alpharetta complete this process faster and with fewer errors.
Build a Closing Timeline
Establish a detailed schedule starting 60-90 days before year-end, assigning owners to tasks like reconciliations by mid-December and final reviews by December 31. Include buffer time for delays in document collection. Coordinate with Payroll Processing Services in Alpharetta for timely payroll data.
- Set milestones: Week 1 for gathering statements, Week 2 for initial reconciliations.
- Notify teams early for expense submissions and inventory counts.
- Use software to track progress and automate reminders.
Accounting Service with CPAs In Alpharetta customizes timelines for local businesses facing tight IRS deadlines.
Gather Essential Documents
Compile bank statements, credit card records, payroll summaries, vendor invoices, customer receipts, inventory counts, loan agreements, prior tax returns, and 1099-NEC forms. Digitize everything to support audits and adjustments. Verify completeness to avoid rushed accruals later.
- Prioritize payroll reports for 941/940 accuracy.
- Collect fixed asset schedules for depreciation calculations.
- Review contracts for outstanding obligations.
Bookkeeping Services in Alpharetta expertly manage document organization, enabling business owners to prioritize high-level strategic initiatives.
Perform Account Reconciliations
Reconcile bank, credit card, AR, and AP accounts against statements, resolving variances over $50 immediately. Age receivables to identify bad debts for write-offs and match payables to purchase orders. Confirm inventory via physical counts using FIFO/LIFO.
| Account Type | Reconciliation Steps | Common Issues |
| Bank/Cash | Match GL to statements | Outstanding checks |
| AR/AP | Aging reports vs. ledgers | Unbilled services |
| Inventory | Physical count vs. records | Shrinkage variances |
Professional Accounting Service experts in Alpharetta handle complex reconciliations with precision.
Review Assets and Liabilities
Audit fixed assets for additions, disposals, or impairments, updating depreciation schedules. Reassess loans for principal/interest accuracy and prepaid expenses for amortization. Accrue liabilities like bonuses or utilities not yet invoiced.
- Calculate depreciation using straight-line or accelerated methods.
- Verify insurance and lease payments align with contracts.
- Adjust for contingent liabilities from legal reviews.
Fractional CFOs in Alpharetta offer advanced asset optimization strategies that extend far beyond mere regulatory compliance.
Audit Expenses and Revenue
Categorize all expenses for deductibility, flagging personal vs. business items. Summarize revenue by stream, deferring unearned portions. Cross-check against budgets to spot anomalies like unusual spikes.
- Scrutinize travel, meals, and home office claims.
- Validate COGS with inventory changes.
- Recognize revenue per ASC 606 guidelines.
Tax Planning Services in Alpharetta expertly uncover overlooked deductions, optimizing your tax position during this critical phase.
Finalize Adjustments and Trial Balance
Post journal entries for accruals, depreciation, prepaids, and inventory adjustments. Run a trial balance, investigating imbalances. Close revenue/expense accounts to retained earnings, ensuring the balance sheet balances.
- Document every adjustment with supporting evidence.
- Review for cutoff errors straddling periods.
- Generate preliminary P&L, balance sheet, and cash flow statements.
Local Payroll Processing Services in Alpharetta ensure payroll adjustments feed accurately into taxes.
Prepare Tax Packages
Compile data for forms: payroll for 941/940, contractors for 1099-NEC/W-9, entity returns like 1120S/1065 with K-1s. Maximize deductions while documenting for audits. Lock the books post-review.
| Tax Form | Key Data Needed | CPA Tip |
| 941/940 | Payroll summaries | Withholdings verified |
| 1120S/K-1 | Income/expenses | Pass-through allocations |
| 1099-NEC | Contractor payments | Thresholds met |
Tax Planning Services in Alpharetta align closings with 2025 strategies under current tax laws.
Lock Books and Plan Ahead
Perform final management review, archive records for 7 years, and reset for new year. Analyze trends for budgeting. Bookkeeping Services in Alpharetta employ automated locking mechanisms to safeguard against post-close modifications.
Leverage Alpharetta Experts
Accounting Service with CPAs In Alpharetta delivers end-to-end support, from Bookkeeping Services to Fractional CFO in Alpharetta insights. Professional Accounting Service ensures seamless Payroll Processing Services in Alpharetta and Tax Planning Services in Alpharetta. Contact local pros for your 2025 close.