Revenue and Expense Reviews
Maxwell Cudjoe
Audit | Financial Reporting, Compliance & Risk Management | IFRS, Taxation & Team Leadership | QuickBooks Expert |
As part of our 7-day year-end series, today’s focus is on the essential process of Revenue and Expense Reviews. Ensuring these accounts are accurate and complete is key to presenting a true picture of your organization's financial health.
Key Points to Cover
1?? Recognizing Year-End Revenue and Accruals: Ensure all revenue earned during the year is captured, including accruals for income that has not yet been invoiced.
2?? Reviewing Expense Accounts for Completeness: Identify missing invoices, overlooked expenses, or duplicate entries. Completeness is crucial for an accurate profit and loss statement.
3?? Adjusting Entries for Prepaid Expenses or Deferred Income: Properly allocate expenses and income to the periods they belong to, ensuring compliance with accrual accounting principles.
4?? Verifying Compliance with Tax Regulations: Cross-check your VAT, withholding tax, and other tax-related accounts to ensure compliance with tax laws and avoid penalties.
?? Pro Tip: Conduct a trend analysis of revenue and expenses to identify anomalies or unexpected variances. These insights can point to areas that need further investigation.
Stay tuned for Series 4 tomorrow.
Let’s make every figure count!
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