Accounts Payable Fiscal Year-End: Corporate Transaction Check List
1. Adjustments
_ Automatic payments (bank drafts and adjustments)
_ Transactions not yet entered: invoices, bills, sales commissions and royalties
_ Transactions entered or coded incorrectly: invoices, bills, sales, payroll
_ Infrequent transactions: returns, voided, corrected or reissued paychecks, tax payments, vendor refunds
_ Inventory adjustments
_ Job adjustments or allocations
_ Payroll adjustments
_ Adjustments for taxes: sales tax, payroll taxes, franchise taxes, etc.
_ Fixed assets: depreciation entries
_ Loan payments: allocating interest and principle
_ Aged accounts receivable: any to be written off as uncollectible
_ Accruals
_ Any questions the client might bring up that would lead to a journal entry?
2. Integration
_ Revenue and cost of goods sold/inventory entry
_ Job costing
_ Payroll (here, you may have several weekly entries to post)
_ Suggest change to systems where applicable
3. Reconcile
_ Bank statement additions and corrections to cash accounts (PayPal?)
_ Petty cash
_ Accounts receivable
_ Credit card statements
_ Equity accounts
_ Loans
_ Accounts payable
_ Inventory
_ Fixed assets
_ Other asset or liability accounts
4. Review
_ General ledger coding consistency: is the transaction coded completely and to the right account?
_ If class is used, is it complete for all transactions?
_ If job is used, is it complete for all transactions?
_ Is the backup documentation in order?
_ Are authorizations complete?
_ Do the transactions look reasonable?
5. Payroll
_ Is documentation for new hires complete?
_ Is the hourly rate or salary amount correct?
_ Are hours accurate for hourly employees?
_ Is overtime paid at the agreed-upon rate?
_ Are deductions taken?
_ Are taxes figured correctly?
_ Are payroll deposits made on time?
_ Are there any court orders that need to be followed?
_ Is tax taken out of bonus checks?
_ Are there any checks that are paid directly to employees?
_ Are employee loans accounted for and collected?
_ Are expense reports in order and coded properly?
_ Are payroll reports filed timely (quarterly)?
_ Are state unemployment payments and reports handled accurately?
_ Are there any cash payroll transactions (illegal in many states)?
_ Are all transactions booked correctly?
_ If payroll is charged to classes or jobs are classes/jobs charged appropriately?
6. Reporting
_ Monthly profit and loss
_ Sales reports
_ Balance sheet as of month end
_ Aged accounts receivable
_ Reports by job or class
_ Budget vs. actual reports if applicable
Accounts Payable Fiscal Year-End: Corporate Transaction Check List
_ Any memorized report that is routine for the client
_ Generate task list from report analysis
_ General ledger
_ Missing checks report
_ Voided/deleted transactions
_ Audit trail
_ Payroll reports
_ Vendor reports
_ Ledgers from any accounts that need special review
7. Backup
_ Make backups
_ New backup system needed?