The year-end financial closing process is a critical exercise for large-sized public companies, whether listed or unlisted. It involves meticulous planning, coordination across departments, compliance with accounting standards, and extensive audit readiness.
This detailed Yearly Closing Checklist serves as a practical guide for finance, accounts, and audit teams by covering every major aspect of the closing cycle-from pre-close preparation and revenue recognition to fixed assets, taxes, disclosures, internal controls, audit coordination, and post-close reporting.
Designed to reduce errors, improve efficiency and ensure regulatory compliance, this checklist helps organizations achieve a smooth, timely, and well-documented financial close, while also strengthening governance and transparency.
|
Category |
Task |
Status |
|
PRE-CLOSE PREPARATION |
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|
Pre-Close |
Distribute year-end close calendar and deadlines to all departments |
☐ Not Started |
|
Pre-Close |
Confirm cut-off dates with AP, AR, Payroll, and Operations |
☐ Not Started |
|
Pre-Close |
Review and update accounting policies for any changes |
☐ Not Started |
|
Pre-Close |
Confirm external auditor schedule and deliverables list |
☐ Not Started |
|
Pre-Close |
Review prior year audit adjustments and ensure corrected |
☐ Not Started |
|
Pre-Close |
Confirm intercompany reconciliation deadlines (if applicable) |
☐ Not Started |
|
Pre-Close |
Review chart of accounts for any needed updates or reclassifications |
☐ Not Started |
|
Pre-Close |
Ensure all monthly reconciliations are done. |
☐ Not Started |
|
Pre-Close |
Communicate freeze dates for sub-ledgers (AP, AR, Inventory) |
☐ Not Started |
|
REVENUE & RECEIVABLES |
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|
Revenue |
Review revenue recognition for proper cut-off |
☐ Not Started |
|
Revenue |
Analyze deferred revenue schedule and recognize earned portions |
☐ Not Started |
|
Revenue |
Review unbilled revenue / WIP and accrue as appropriate |
☐ Not Started |
|
Revenue |
Reconcile revenue per GL to sales reports / CRM |
☐ Not Started |
|
Revenue |
Review variable consideration estimates (rebates, returns, discounts) |
☐ Not Started |
|
Receivables |
Complete AR aging analysis and reconcile to GL |
☐ Not Started |
|
Receivables |
Review and update bad debt reserve / allowance for doubtful accounts |
☐ Not Started |
|
Receivables |
Confirm customer balances (positive confirmations for audit) |
☐ Not Started |
|
Receivables |
Write off uncollectible accounts with proper approval |
☐ Not Started |
|
Receivables |
Review subsequent cash receipts for proper period recording |
☐ Not Started |
|
Receivables |
Reconcile intercompany receivables and confirm balances |
☐ Not Started |
|
Receivables |
Review credit memos issued around year-end for proper cut-off |
☐ Not Started |
|
CASH & INVESTMENTS |
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|
Cash/bank |
Reconcile all bank accounts to GL |
☐ Not Started |
|
Cash/bank |
Obtain bank confirmations for all accounts |
☐ Not Started |
|
Cash/bank |
Review outstanding cheques > 90 days . |
☐ Not Started |
|
Cash/bank |
Reconcile petty cash and ensure counts performed |
☐ Not Started |
|
Cash/bank |
Review cash in transit / transfers between accounts |
☐ Not Started |
|
Investments |
Obtain investment statements and reconcile to GL |
☐ Not Started |
|
Investments |
Mark-to-market investments and record FV adjustments |
☐ Not Started |
|
Investments |
Review investment classification (HTM, Trading) |
☐ Not Started |
|
Investments |
Assess investments for impairment |
☐ Not Started |
|
INVENTORY & COST OF SALES |
||
|
Inventory |
Coordinate and observe year-end physical inventory count |
☐ Not Started |
|
Inventory |
Review inventory for slow-moving/obsolete items and adjust reserves |
☐ Not Started |
|
Inventory |
Verify inventory costing methodology (FIFO, LIFO, Avg Cost) |
☐ Not Started |
|
Inventory |
Review inventory in transit and proper cut-off (FOB terms) |
☐ Not Started |
|
Inventory |
Assess lower of cost or net realizable value |
☐ Not Started |
|
Inventory |
Review consignment inventory (in and out) |
☐ Not Started |
|
Cost of Sales |
Reconcile standard cost variances and analyze |
☐ Not Started |
|
Cost of Sales |
Review overhead allocation methodology |
☐ Not Started |
|
Cost of Sales |
Verify COGS agrees to inventory relief and production |
☐ Not Started |
|
PREPAID EXPENSES & OTHER ASSETS |
||
|
Prepaids |
Review prepaid expense schedules and amortize through year-end |
☐ Not Started |
|
Prepaids |
Reconcile prepaid insurance to policy schedules |
☐ Not Started |
|
Prepaids |
Review prepaid software/licenses and subscription accounting |
☐ Not Started |
|
Other Assets |
Review deposits and advances for recoverability |
☐ Not Started |
|
Other Assets |
Reconcile due from employees and advances |
☐ Not Started |
|
Other Assets |
Review deferred costs (contract costs, commissions etc..) |
☐ Not Started |
|
Other Assets |
Assess other assets for impairment |
☐ Not Started |
|
|
FIXED ASSETS & DEPRECIATION |
|
|
Fixed Assets |
Complete fixed asset rollforward (additions, disposals, transfers) |
☐ Not Started |
|
Fixed Assets |
Reconcile fixed asset sub-ledger to GL |
☐ Not Started |
|
Fixed Assets |
Review capitalization policy compliance . |
☐ Not Started |
|
Fixed Assets |
Calculate and record annual depreciation expense |
☐ Not Started |
|
Fixed Assets |
Record gain/loss on asset disposals |
☐ Not Started |
|
Fixed Assets |
Review useful life estimates and depreciation methods |
☐ Not Started |
|
Fixed Assets |
Assess fixed assets for impairment |
☐ Not Started |
|
Fixed Assets |
Reconcile book to tax depreciation differences |
☐ Not Started |
|
Leases |
Review lease schedules and compliance |
☐ Not Started |
|
Leases |
Record ROU asset and lease liability adjustments |
☐ Not Started |
|
Leases |
Identify and account for any new leases or modifications |
☐ Not Started |
|
INTANGIBLES & GOODWILL |
||
|
Intangibles |
Complete intangible asset rollforward |
☐ Not Started |
|
Intangibles |
Calculate and record amortization expense |
☐ Not Started |
|
Intangibles |
Review finite-lived intangibles for impairment indicators |
☐ Not Started |
|
Goodwill |
Perform annual goodwill impairment assessment |
☐ Not Started |
|
Goodwill |
Document qualitative or quantitative impairment analysis |
☐ Not Started |
|
Goodwill |
Reconcile goodwill by reporting unit |
☐ Not Started |
|
Goodwill |
Review any acquisition accounting adjustments (measurement period) |
☐ Not Started |
|
ACCOUNTS PAYABLE & ACCRUED LIABILITIES |
||
|
AP |
Complete AP cut-off testing (goods/services received but not invoiced) |
☐ Not Started |
|
AP |
Reconcile AP sub-ledger to GL |
☐ Not Started |
|
AP |
Review vendor statements and resolve discrepancies |
☐ Not Started |
|
AP |
Process all invoices received through cut-off date |
☐ Not Started |
|
AP |
Reconcile intercompany payables and confirm balances |
☐ Not Started |
|
AP |
Review debit balances in AP and reclassify as appropriate |
☐ Not Started |
|
Accruals |
Accrue for unbilled services and goods received |
☐ Not Started |
|
Accruals |
Accrue professional fees (audit, legal, tax) |
☐ Not Started |
|
Accruals |
Accrue utilities and other recurring expenses |
☐ Not Started |
|
Accruals |
Review accrued bonus and incentive compensation |
☐ Not Started |
|
Accruals |
Review commission accruals |
☐ Not Started |
|
Accruals |
Accrue interest expense on all debt instruments |
☐ Not Started |
|
Accruals |
Review warranty and product liability reserves |
☐ Not Started |
|
Accruals |
Review legal reserves and contingent liabilities |
☐ Not Started |
|
PAYROLL & BENEFITS |
||
|
Payroll |
Reconcile payroll registers to GL |
☐ Not Started |
|
Payroll |
Accrue wages for days worked but unpaid at year-end |
☐ Not Started |
|
Payroll |
Reconcile payroll tax liabilities |
☐ Not Started |
|
Payroll |
Verify retirement plan contributions |
☐ Not Started |
|
Benefits |
Accrue health insurance and other benefits through year-end |
☐ Not Started |
|
Benefits |
Review pension & other obligations and actuarial reports |
☐ Not Started |
|
Benefits |
Record deferred compensation liability adjustments |
☐ Not Started |
|
Stock Comp |
Calculate and record stock-based compensation expense |
☐ Not Started |
|
Stock Comp |
Review performance-based awards and update probability |
☐ Not Started |
|
Stock Comp |
Reconcile equity awards and retained earnings |
☐ Not Started |
|
DEBT & FINANCING |
||
|
Debt |
Reconcile debt schedules to GL and confirmations |
☐ Not Started |
|
Debt |
Obtain bank/lender confirmations |
☐ Not Started |
|
Debt |
Calculate and record interest expense and accrued interest |
☐ Not Started |
|
Debt |
Amortize debt issuance costs and discounts/premiums |
☐ Not Started |
|
Debt |
Classify debt as current vs. long-term (maturity analysis) |
☐ Not Started |
|
Debt |
Review line of credit usage and availability |
☐ Not Started |
|
Debt |
Review capital lease obligations |
☐ Not Started |
|
Derivatives |
Mark-to-market derivatives and record FV adjustments |
☐ Not Started |
|
Derivatives |
Review hedge accounting and effectiveness testing |
☐ Not Started |
|
INCOME TAXES |
||
|
Income Tax |
Calculate current income tax provision |
☐ Not Started |
|
Income Tax |
Calculate deferred tax provision |
☐ Not Started |
|
Income Tax |
Update deferred tax asset/liability rollforward |
☐ Not Started |
|
Income Tax |
Prepare book-to-tax reconciliation |
☐ Not Started |
|
Income Tax |
Calculate and document effective tax rate reconciliation |
☐ Not Started |
|
Income Tax |
Reconcile income tax payable/receivable |
☐ Not Started |
|
Income Tax |
Review international tax provisions (if applicable) |
☐ Not Started |
|
Income Tax |
Document R&D tax credits and other credits |
☐ Not Started |
|
Income Tax |
Prepare tax footnote disclosures |
☐ Not Started |
|
EQUITY |
||
|
Equity |
Prepare statement of stockholders' equity rollforward |
☐ Not Started |
|
Equity |
Record dividends declared and paid |
☐ Not Started |
|
Equity |
Review accumulated other comprehensive income (AOCI) |
☐ Not Started |
|
Equity |
Record foreign currency translation adjustments |
☐ Not Started |
|
Equity |
Reconcile retained earnings to prior year |
☐ Not Started |
|
Equity |
Review minority/noncontrolling interests (if applicable) |
☐ Not Started |
|
Equity |
Reconcile shares outstanding to transfer agent |
☐ Not Started |
|
FINANCIAL STATEMENT PREPARATION |
||
|
Trial Balance |
Generate trial balance and verify debits = credits |
☐ Not Started |
|
Trial Balance |
Post all adjusting journal entries |
☐ Not Started |
|
Trial Balance |
Review and approve all year-end journal entries |
☐ Not Started |
|
Trial Balance |
Eliminate intercompany transactions (if consolidated) |
☐ Not Started |
|
Statements |
Prepare balance sheet with proper classifications |
☐ Not Started |
|
Statements |
Prepare income statement with proper expense classifications |
☐ Not Started |
|
Statements |
Prepare statement of cash flows (direct or indirect method) |
☐ Not Started |
|
Statements |
Prepare statement of stockholders' equity |
☐ Not Started |
|
Statements |
Verify all statements tie and crossfoot |
☐ Not Started |
|
Statements |
Perform analytical review and variance analysis (YoY) |
☐ Not Started |
|
Statements |
Document management explanations for significant variances |
☐ Not Started |
|
Statements |
Review financial statement presentation as per GAAP/INDAS |
☐ Not Started |
|
EPS |
Calculate basic and diluted earnings per share |
☐ Not Started |
|
Segments |
Prepare segment reporting disclosures (if applicable) |
☐ Not Started |
|
FOOTNOTES & DISCLOSURES |
||
|
Disclosures |
Prepare/update summary of significant accounting policies |
☐ Not Started |
|
Disclosures |
Prepare revenue recognition footnote |
☐ Not Started |
|
Disclosures |
Prepare lease footnote disclosure |
☐ Not Started |
|
Disclosures |
Prepare debt and credit facility disclosures |
☐ Not Started |
|
Disclosures |
Prepare fair value measurement disclosures |
☐ Not Started |
|
Disclosures |
Prepare related party transaction disclosures |
☐ Not Started |
|
Disclosures |
Prepare commitments and contingencies footnote |
☐ Not Started |
|
Disclosures |
Prepare subsequent events evaluation and disclosure |
☐ Not Started |
|
Disclosures |
Prepare going concern evaluation and documentation |
☐ Not Started |
|
Disclosures |
Prepare stock compensation footnote |
☐ Not Started |
|
Disclosures |
Prepare Employee Benfits/obligation footnote (if applicable) |
☐ Not Started |
|
Disclosures |
Prepare business combination footnote (if applicable) |
☐ Not Started |
|
Disclosures |
Update disclosure checklist and compare to prior year |
☐ Not Started |
|
Disclosures |
Review for any new accounting standards adopted |
☐ Not Started |
|
AUDIT SUPPORT & COORDINATION |
||
|
Audit |
Prepare PBC (prepared by client) list deliverables |
☐ Not Started |
|
Audit |
Organize and index all supporting schedules |
☐ Not Started |
|
Audit |
Complete management representation letter |
☐ Not Started |
|
Audit |
Prepare attorney letter for legal confirmations |
☐ Not Started |
|
Audit |
Respond to auditor inquiries timely |
☐ Not Started |
|
Audit |
Review and respond to audit adjustments |
☐ Not Started |
|
Audit |
Review summary of unadjusted audit differences |
☐ Not Started |
|
Audit |
Coordinate physical inventory observation with auditors |
☐ Not Started |
|
Audit |
Provide access to systems and records as needed |
☐ Not Started |
|
Audit |
Review draft audit report for accuracy |
☐ Not Started |
|
Audit |
Review management letter comments and develop responses |
☐ Not Started |
|
Audit |
Coordinate Audit Committee meeting and presentation |
☐ Not Started |
|
Audit |
Obtain signed audit opinion |
☐ Not Started |
|
Audit |
File audited financials as required (bank, nse, bse, etc.) |
☐ Not Started |
|
INTERNAL CONTROLS |
||
|
Controls |
Complete control self-assessments for year-end |
☐ Not Started |
|
Controls |
Test year-end key controls |
☐ Not Started |
|
Controls |
Document walkthroughs for significant processes |
☐ Not Started |
|
Controls |
Review and remediate any control deficiencies |
☐ Not Started |
|
Controls |
Document review and approval of journal entries |
☐ Not Started |
|
Controls |
Complete account reconciliation control testing |
☐ Not Started |
|
Controls |
Review access controls and segregation of duties |
☐ Not Started |
|
Controls |
Complete management's assessment |
☐ Not Started |
|
Controls |
Document remediation of any material weaknesses |
☐ Not Started |
|
POST-CLOSE & REPORTING |
||
|
Post-Close |
Close the books in the GL system |
☐ Not Started |
|
Post-Close |
Lock the accounting period to prevent posting |
☐ Not Started |
|
Post-Close |
Archive year-end workpapers and supporting documentation |
☐ Not Started |
|
Post-Close |
Update next year's close calendar with improvements |
☐ Not Started |
|
Reporting |
Prepare Board of Directors report & financial package |
☐ Not Started |
|
Reporting |
Prepare budget-to-actual variance analysis |
☐ Not Started |
|
Reporting |
Prepare annual report |
☐ Not Started |
|
Reporting |
Prepare KPI dashboard for management |
☐ Not Started |
|
Reporting |
Complete all regulatory filings by deadlines |
☐ Not Started |
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