Year end is a normal month-end close plus a set of annual tasks that only happen once, which is exactly why they get missed. Most of the annual work can be started in October and November. This checklist separates what must wait for December 31 from what can be done early, and ends with the step many teams forget: locking the prior year so nothing moves after the auditors sign. Pair it with our software category guides to see which tools fit your team. Once you have a shortlist, check the vendor profiles and the finance glossary for unfamiliar terms, then use our head-to-head comparisons before your first demo.
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Start in Q4, not January. Assign owners and dates in October. Vendor W-9 collection, count planning, fixed asset cleanup, and PBC list agreement with auditors can all be finished before December.
Run the normal month-end close first. December is still a month-end close. Complete it using your standard checklist, then work through the annual items here.
Roll forward every annual schedule. Fixed assets, equity, debt, and reserves should each have a roll-forward from opening to closing balance with the activity in between. The fixed asset table here calculates the ending balance.
Hand off to tax and audit with a package. Send the tax preparer and auditors a single set of final schedules tied to the trial balance, rather than answering one request at a time.
Lock the year. Once audit adjustments are posted and the statements are final, close the prior-year periods in the ERP so no entry can change the audited numbers.
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One row per annual task. Timing shows when it can start; many items do not need to wait for December 31.
| Area | Task | Owner | Timing | Evidence for auditors | Status |
|---|---|---|---|---|---|
| Inventory | Physical count or cycle count reconciliation | Plan Nov, count at/near YE | Count sheets, book-to-physical recon | Not started | |
| Fixed assets | Roll-forward, disposals, impairment review | Start Nov | Roll-forward tied to TB, additions support | Not started |
More free templates finance teams use alongside this one.
Slow closes are rarely caused by slow accountants. They are caused by tasks that could have run in parallel waiting on each other, and by a review step that only starts once everything else is finished. This checklist sequences the close by dependency rather than by habit.
The PBC list is the prepared-by-client request list your auditors send before fieldwork. Audits run late when the list is treated as a pile of emails rather than a project plan. This template turns it into a tracker with one owner and one due date per request, and includes the standard items requested in a financial statement audit so you can prepare most of them before the auditors ask.
A reconciliation proves a balance sheet number is supported by something outside the general ledger. Most weak reconciliations fail in one of two ways: the supporting balance is just another GL report, or reconciling items sit unexplained for months. This template forces an independent support source, ages every reconciling item, and calculates the unexplained difference so nobody can round it away.
Year end includes everything in a normal month-end close plus annual tasks: physical inventory counts, fixed asset roll-forwards, tax provision, 1099 and W-2 reporting, equity roll-forwards, and audit preparation. The annual items are where most year-end delays come from.
Many teams start in October. Assigning owners, agreeing the PBC list and dates with auditors, collecting W-9s, and cleaning up the fixed asset register can all happen before the year ends, which shortens the January workload.
Form 1099-NEC is due to recipients and to the IRS by January 31 following the payment year, moving to the next business day if that falls on a weekend or holiday. Reporting thresholds and e-filing requirements have changed in recent years, so confirm the current rules each year.
Once financial statements are issued, any change to that year's balances is a restatement or a prior-period adjustment. Closing the periods in the ERP stops accidental postings and gives auditors evidence that the audited balances cannot be altered without a logged exception.
