Year-End Close Checklist: Key Steps & Best Practices
A year-end close checklist is a structured list of tasks used to finalise accounts for the financial year. It helps ensure all transactions are recorded accurately, key balances are reconciled, supporting evidence is complete, and statutory accounts (and audit deliverables, where relevant) can be prepared confidently and on time.
- A checklist improves completeness, ownership, and audit readiness at year-end.
- Year-end close requires deeper reconciliations, documentation, and review than month-end close.
- The smoothest year-ends are built on in-year discipline: reconciliations, policies, and intercompany control.
Why a year-end checklist matters
Year-end close is higher stakes than month-end because it supports statutory reporting, tax filings, and external scrutiny. A checklist reduces the risk of missed accruals, unreconciled balances, inconsistent estimates, and last-minute evidence gaps that delay sign-off and audits.
It also clarifies who owns each deliverable, what “done” looks like, and when reviews must happen.
Typical year-end checklist areas
A complete checklist usually includes:
- Cut-off and final postings confirm period closure rules; complete accruals and prepayments
- Balance sheet reconciliations: bank, AR/AP, tax/VAT, fixed assets, payroll, intercompany, provisions
- Fixed assets: additions, disposals, depreciation, impairment considerations
- Revenue and expenses: confirm recognition policies, review unusual items and one-offs
- Intercompany: reconcile and resolve balances; confirm eliminations approach for group reporting
- Tax and compliance: corporation tax provisions, VAT reviews, statutory disclosures
- Reporting pack: trial balance finalisation, financial statements, supporting schedules, sign-offs
- Audit readiness (if applicable): evidence folder, reconciliations, key judgments, approvals
Best-practice approach
- Start early: resolve complex areas (intercompany, provisions, revenue timing) before year-end
- Standardise schedules and templates for reconciliations and journals
- Document key estimates and judgments with rationale and approvals
- Keep an issues log to track open items, owners, and deadlines
How is year-end close different from month-end close?
Year-end requires more evidence, formal reviews, disclosures, and often audit support.
What causes year-end delays most often?
Unreconciled intercompany, late reconciliations, missing evidence, and unresolved judgments.
How can teams reduce year-end stress?
Treat month-end like practice: keep reconciliations current, standardise journals, and fix issues as they arise.
Read AccountsIQ’s full e-guide to a stress-free year-end.
