Accounting and Bookkeeping
Top Ten Items to Review at Year-End
Your year-end review and audit preparation should include these items among others depending on your organizations form, accounts and transactions. This list assumes the accrual basis of accounting is in use.
- Cut Off
Review for proper cut-off at year-end to ensure expenses and revenues have been recorded in the proper year. (Recorded in the year the services were performed, goods delivered, unconditional contributions promised, etc.)
- Bank Reconciliations and Asset and Liability Reconciliations
Ensure all are completed and reviewed, and that the review is documented.
- Accounts and Contributions Receivable Collectability
Consider collectability of receivables and adjust as needed. Consider the need to write off receivables or record an allowance for doubtful accounts.
- Fixed Assets
Ensure depreciation has been calculated and properly recorded. Review for and remove items no longer in use. Review for proper additions looking for any fixed asset purchases that should have been capitalized under your policies, but instead were coded to an expense account such as repairs, maintenance, consulting, etc.
- Net Assets with Donor Restrictions
Review the roll forward of net assets with donor restrictions to ensure all donor restricted revenues are included and that releases are supported by expenditures.
- In-kind goods and services
Review detail of in-kind goods and services received to ensure it is complete and note how they were used or if they were sold.
- Contributions, Other Revenue and Related Liabilities
Review contribution and exchange agreements for proper classification, valuation and timing of revenue recognition, as well as proper recording of deferred revenue on exchange revenue received in advance or refundable advances for conditional contributions received in advance.
- Review journal entries
Review journal entries for the year for any unusual entries and be sure the memos are clear.
- Budget Comparison
Review of the financial statements and year end comparison to budget. Note explanations for significant variances.
- Year over Year Comparison
Prepare and review a year over year fluctuation analysis and follow up on significant changes. Note the reasons for material changes.