Year-end Procedures and an Accountant's responsibilities

 To close the books and ensure proper financial reporting, you would normally execute a number of year-end procedures as an accountant. Here are a few typical tasks:

1. Account reconciliation is necessary to verify that the balances on your balance sheet accounts match those in your general ledger. This includes checking your bank and credit card statements as well as other balance sheet accounts.

2. Making necessary corrections to accruals, deferrals, and other items' records will guarantee that the financial statements accurately reflect the company's financial situation and its year's operating results.

3. Calculate and record the depreciation expense for fixed assets as well as the amortisation expense for intangible assets.

4. Inventory valuation: If your business keeps inventory, you must physically count it and match the results with the general ledger. Adjustments can be required to account for any differences and represent the accurate inventory value.

5. Examining the accounts payable and receivable: Make sure that all outstanding payables and receivables are accurately reported. Make any adjustments required to account for uncollectible debts or other problems.

6. Financial statement preparation: Produce financial statements like the cash flow statement, balance sheet, and income statement. The company's financial performance and position for the year are summed up in these statements.

7. Temporary accounts should be closed by transferring their remaining amounts to the relevant income summary account. The accounts are then ready for the subsequent accounting period.

8. Reviewing the financial statements: Carefully examine the financial statements to make sure they are accurate and consistent. Keep an eye out for any anomalies or mistakes that need to be fixed.

9. Archiving and organising financial records: For future reference and potential audits, properly archive and arrange all financial records, including transactional supporting documents.

10. Compliance and reporting: Ensure that all legal obligations are met. Also, make any essential reports or filings, such tax returns or financial statements for stakeholders outside the company.

Depending on the company's size, sector, and particular accounting standards, these duties may change. It's crucial to adhere to generally accepted accounting principles (GAAP) or the relevant local accounting rules. Additionally, speak with the management or accounting team of your business to learn about any particular guidelines or processes that they may have established for year-end closing.

11. Cash flow analysis: During the year-end closure process, accountants do a thorough examination of the company's cash flow. They look at the sources and uses of cash, pinpoint any problems with cash flow, and offer suggestions for improving cash management and liquidity.

12. Assessment of revenue recognition: Accountants check for compliance with relevant accounting standards and analyse revenue recognition procedures. To appropriately recognise income in compliance with the standards, they examine revenue streams, contract provisions, and performance commitments.

13. Accounting professionals analyse costs and expenses incurred during the year and compare them to planned or anticipated amounts. They create variance reports that show noteworthy differences, allowing management to pinpoint areas where costs may be lowered or efficiency can be increased.

14. Debt and interest analysis: Accountants look at the debt levels and interest costs of the organisation. They examine the impact of debt levels, interest rates, and payback terms on the company's financial position and offer suggestions for improving debt management.

15. Review of insurance policies: Accountants work with experts in risk management to examine insurance contracts and make sure the company's assets, obligations, and activities are adequately covered. To reduce potential risks, they evaluate policy provisions, coverage exclusions, and rates.

16. Accounting professionals evaluate the company's employee benefit programmes, including healthcare and retirement programmes. To guarantee effective administration and reporting, they examine plan contributions, employee engagement, and regulatory compliance.

17. Communication between internal and external stakeholders: Accountants work together with a variety of internal and external stakeholders to respond to questions, present financial data, and guarantee transparency. To support efficient communication, they may interact with management, auditors, regulatory bodies, investors, and other stakeholders.

These extra jobs serve as a reminder of the wide range of duties that accountants perform during year-end closing. Accountants support the organization's financial stability, compliance, risk management, and strategic decision-making by diving into cash flow analysis, revenue recognition, cost management, and other areas.

 Disclaimer: In this document Nothing contained is to be construed as a legal opinion or view of either of the authors whatsoever and the content is to be used strictly for educative purposes only.