MY ULTIMATE RESOURCE FOR FINANCE PROFESSIONALS. Get it FREE today.

Year-End Closing Process: 3 Areas of Focus in Finance

Introduction to the Year-End closing process: 3 areas of focus in finance on a blue background with an illustration.

What do you need to do in the year-end closing process? If you are working in Finance just like me, chances are that it’s getting busy.

In addition to the day-to-day activities, there are three things you should do to finish the year well.

Assess Your Balance Sheet Positions

One of the main accounting principles is the accrual principle. First, the transactions need to be recorded in the right period. After that, you need to review your balance sheet positions and book any impact on your profit and loss.

For assets: Review their value, and if needed, you need to book an impairment.
For provisions: Update your assumptions to your best knowledge to have an accurate provision.
Most importantly, remember to document these steps!

Furthermore, here are some areas to have a specific focus on at year-end:

  • Personnel/HR provisions
  • Litigations
  • Bad debts
  • Stock
  • Warranty
  • Invoices not received
  • Any fixed or immaterial assets no more in use

Prepare Your Landing Scenario for The Year-End Closing

Now that you are closing in November start working on forecasting December. As a result, identify the risks and opportunities on your last forecasting. Then, discuss it with your business partners and your management. Moreover, in your exchanges, you will identify what are the key levers to make opportunities happen and mitigate risks.

Collect Cash

Most certainly, a lot of companies have included their operating cash flow as part of their objectives. Therefore, this means that the management can request the finance team to make an additional effort to maximize the cash collection.

The Bottom Line – Year-End Closing Process

Ultimately, being prepared, organized, and proactive with accounting practices throughout the fiscal year is the key to a smoother year-end closing process.

Also, let me know if you have any remarks or questions on this topic!

Moreover, if you want to receive more finance tips like this, feel free to sign up for my newsletter. If you subscribe, every two weeks, you will receive an email from where I share best practices, career advice, templates, and insights for Finance Professionals.

Share This :

Further Readings:

Free Finance & Productivity Resources:

Free Finance & Productivity Resources

Reach Me

I help Finance professionals grow their skills in Finance, Controlling and FP&A.

If you need help, mentorship and guidance with your career, LET’S CONNECT.

Instant Download

Enter Your Email Address Below to Start Your Download.

You will be subscribed to my newsletter. Unsubscribe at any time.

Unlock Excel Secrets

Enter Your Email Address Below to Start Your Download.

You will be subscribed to my newsletter. Unsubscribe at any time.

Free Download

Get My Ultimate Resource for Finance Professionals.

Grab the Top 10 Free Finance Resources packed in a ZIP file and enhance your expertise and productivity.

Unlock Excel Secrets

Enhance Your Finance Skills with Excel Tips.

Before you leave, grab my top 100 Excel tips designed specifically for finance professionals.

Boost your efficiency and accuracy!

Contact.

Fill out the form below, and we will be in touch shortly.