Year end accounts

This is the time where we are back from your holidays, having fun and heck yeah...enjoying with families.

But we are back in our office checking our accounts, ledgers, and other Financial statements elements and close the fiscal period ending before starting an new year.

Accountants need to be keen with this process and should always make sure that every balance in temporary accounts should be zero.

One may ask, what are temporary accounts; these are accounts appearing in the income statement (a statement of profit or loss and other comprehensive income for the period) such as revenue, expenses, gains or losses that at the end of any fiscal year are closed.

Things to take note:

1. Make sure that, physical inventory count is done and updated
2. Cash accounts; close all cash accounts and complete all reconciliations
3. Check your A/c Payable and A/c receivable position, observing the aging, balances and any provision made.
4. Asset review is important, in order to recognize any disposal made, purchase and adhere to its recognition principles
5. Payroll should be also a prioriy in making sure that all entries, benefits properly recognized(IAS 19)
6. Prepayments and accruals are areas that need to be checkd and confirm the year end amortization
7. Final adjustment and ending period adjustments for finalizing the Financial statements ready for audit.

Goodluck and may the Odd be in your favour.