Year-end work is easier when the company closes each month properly. Before auditors or tax professionals request the information, ensure the ledger agrees with genuine supporting records.
Start with bank and cash reconciliation
Compare every bank account and cash record with the ledger. Explain unreconciled deposits, bounced payments, transfers and old cheques rather than hiding differences in a suspense account.
Confirm sales, payables and accruals
Review customers’ outstanding invoices, supplier statements, deposits received, prepaid costs and services received but not yet billed. Decide the accounting period using the actual transaction and applicable policy, not simply when an invoice arrives.
Review stock, assets and payroll
Check stock counts, obsolete items, fixed-asset additions, depreciation, payroll deductions and unpaid staff costs. Keep invoices for significant purchases and discuss doubtful balances promptly.
Coordinate filing and audit exemption decisions
Check the relevant SSM audit-exemption criteria for the financial period. The framework is phased; for financial periods commencing in 2026, thresholds differ from 2025 and require the relevant multi-year tests and exclusions. Eligible companies still have other financial reporting and filing responsibilities.
Practical example
A March year-end company receives an audit-related invoice months later. Whether a cost is accrued depends on when the relevant service or obligation arose and the applicable policy—not the invoice date alone.
Your practical checklist
- Reconcile all bank, cash and intercompany balances
- Review receivables, payables and accrued expenses
- Check inventory, fixed assets and payroll records
- Confirm financial period, audit position and filing timetable
Frequently asked question
Does audit exemption mean no financial statements are needed?
No. Other accounting, statutory reporting and filing responsibilities may continue even where an audit exemption applies.
General information only. Requirements depend on your circumstances and may change. Regulated tax-agent, audit, legal or liquidation work is handled by appropriately qualified professionals.