As year-end approaches, business owners and their bookkeepers can significantly reduce turnaround time and costs by ensuring records are clean and complete before they are handed over for a financial statement compilation engagement.
We frequently see common issues that delay year-end work—missing reconciliations, incomplete documentation, and overlooked intercompany transactions. To streamline your engagement, we’ve created a practical, accountant-approved checklist for bookkeepers to complete before records are submitted.
This checklist is designed for owner-managed corporations and sole proprietors where bookkeeping is managed internally or by a third-party bookkeeper.
Why This Matters
A clean set of books avoids delays, prevents additional accounting fees, and reduces the risk of tax filing errors. It also helps your accountant provide more timely advice, especially in areas like dividends, tax planning, or adjusting journal entries.
Key Areas to Complete Before Submission
1. Reconcile All Accounts
- Ensure all financial accounts are up to date:
- Bank accounts, credit cards, and loans are reconciled to their year-end statements.
- Extra entries are corrected, and unreconciled entries are documented
- Intercompany balances (loans, transfers, charges) are reviewed and reconciled across all related entities—this is a frequent point of concern.
- Suspense or clearing accounts (e.g., Payroll Payable, GST/HST Payable, Shareholder Loans) carry no unexplained balances.
- Accounts Receivable and Payable are aged, reviewed, and cleaned up where needed.
2. Gather Supporting Documentation
Have the following on hand:
- Year-end bank, credit card, and loan statements.
- New loan agreements or updated amortization schedules.
- Payroll summaries and T4 reconciliations.
- GST/HST and WSIB remittances and reconciliations.
- Documentation for new asset purchases or sales (invoices, agreements).
- Mileage logs or vehicle usage tracking (if applicable).
- Any new leases or equipment financing.
3. Year-End Adjustments
You don’t need to finalize every entry—but flag these:
- Accruals for wages, subcontractors, bonuses, or interest.
- Prepaid expenses and deferred revenue.
- Inventory count and valuation method.
- Any declared dividends or shareholder draws.
- Adjustments for personal vs. business use of vehicles or home office (if applicable).
4. Corporate and Legal Records
- Verify legal name, address, and CRA Business Number.
- Confirm shareholder changes or structural changes during the year.
- Note any major events: new corporations, wind-ups, business sales, etc.
5. Final Review and Submission
- Provide a final Trial Balance and General Ledger export (Excel or backup file).
- Lock the books or flag the year-end in software to prevent changes.
- Notify your accountant of any unresolved items, timing issues, or known errors.
Want the Full Checklist?
We’ve put together a printable checklist you can download and use year after year.
