Duluth/Gwinnett CPA: Business Checklist to Ensure That Your Internal Books are Correct
Below is a list of items you might use to critique to your internal books. Each and every company should prepare one that is specifically designed to their business to ensure that their financial results are carefully monitored and operating integrity retained. Serving as an Atlanta CPA for over thirty years, I have learned that both having and referring to a “well-kept” set of internal books is a sign of all successful entrepreneurs. The attached checklist will be a good start to ensuring that your own company’s books are correct:
-Having bank reconciliations and statements agreeing/reconciling all cash balances.
-Do Accounts Receivable and Accounts Payable totals agree to open reports/detail per the system.
-How much of Accounts Receivable is over sixty days.
-Do you expect to collect all of the Accounts Receivable balance. If not how much do you expect to have difficulty collecting. How does this amount compare to your Allowance for Doubtful accounts.
-Review your Fixed Asset Records detail on a book basis against your cost, accumulated depreciation, and depreciation expense amounts listed.
-Review your Fixed Asset Records detail on a tax basis against your cost, accumulated depreciation, and depreciation expense amounts.
-Determine what the net increase/decrease will be when calculating tax depreciation vs. book depreciation. To this end please be sure to consider and reflect what fixed assets you plan to buy by year end.
-Ensuring that Shareholder Distributions reflect those only of the current year and that all applicable estimated payments to the IRS and Georgia have been paid.
-Confirm if you Prepaid are correct.
-Confirm if your Accrued Vacation account is correct and applied on a consistent basis from prior years.
-Confirm that your Accounts Payable Other and Other Accrued Expenses are correct.
-Confirm if your Note Payable Accounts, Capitalized Leases, and all Financial Debts are correct.
-Confirm if Customer Deposits account is correct.
-Ensure that the Shareholder Distributions account as of the prior year is closed to Retained Earnings as the first day of the next tax year.
-Ensure that after you do the above that your internal books equals the retained earnings as of last year’s books.
-Ensure that this year’s Net Income shows as a separate line item on the Balance Sheet.
-Please take a look at your Profit & Loss accounts are correct and verify their financial integrity as all the year to date totals are higher/dramatically different than one would anticipate based upon prior year operating results, trends, changes in number of personnel, etc.
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