Professional Year-End Adjustments
Dreading year-end close and tax preparation? Our Year-End Adjustments services ensure your books are tax-ready with proper depreciation calculations, inventory valuations, accrual entries, and seamless CPA collaboration that makes tax season stress-free.
Perfect For
- Businesses preparing for annual tax filing
- Companies with depreciation and fixed asset complexities
- Organizations requiring detailed CPA workpapers
- Businesses wanting to maximize tax deductions legally
The Year-End Challenge
Common Year-End Problems
- Depreciation calculations that haven't been updated all year
- Inventory counts that don't match book values
- Missing accruals for expenses and revenue
- Disorganized records causing CPA delays and higher fees
- Uncertainty about tax deductions and compliance
- Year-end surprises affecting tax planning
Cost of Poor Preparation
- Higher CPA fees due to disorganized records
- Missed tax deductions and credits
- Filing deadline stress and potential extensions
- Inaccurate financial statements affecting business decisions
- IRS audit risk from incorrect or unsupported entries
Our Comprehensive Year-End Process
Pre-Year-End Planning (November)
Current Year Review & Documentation
- Analyze year-to-date financial performance
- Identify potential year-end adjustments needed
- Review depreciation schedules and asset additions
- Initial CPA coordination and tax planning discussion
Year-End Adjusting Entries (January)
Fixed Assets, Inventory & Accruals
- Calculate annual depreciation and fixed asset updates
- Coordinate physical inventory counts and adjustments
- Accrue for known expenses and unbilled revenue
- Adjust prepaid expenses and deferred revenue
Financial Statement Finalization
Account Analysis & Statements
- Detailed review of all balance sheet accounts
- Revenue recognition analysis and adjustments
- Expense matching and period-end cutoff testing
- Preparation of complete cash flow statement
CPA Workpaper Preparation
Trial Balance & Tax Documentation
- Final adjusted trial balance with all year-end entries
- Detailed fixed asset and depreciation schedules
- Supporting schedules for all major accounts
- Tax planning documentation and coordination materials
What’s Included
Complete Year-End Package
- Depreciation Calculations - Complete fixed asset and depreciation analysis
- Inventory Adjustments - Physical count coordination and valuation adjustments
- Accrual Entries - Proper matching of revenues and expenses
- Financial Statement Preparation - Final P&L, Balance Sheet, and Cash Flow
CPA Collaboration
- Workpaper Preparation - Professional trial balance and supporting schedules
- Documentation Package - Complete backup for all adjustments and entries
- Direct CPA Communication - Coordination calls and question resolution
- Tax Planning Support - Strategic advice for current and future years
Quality Assurance
- Multi-Level Review - Senior accountant oversight and approval
- Compliance Verification - GAAP compliance and reasonableness testing
- Deadline Management - Timely completion to meet tax filing deadlines
- Follow-Up Support - Available for CPA questions during tax preparation
Success Story
Manufacturing Company Year-End Optimization
A growing manufacturing company was struggling with year-end inventory valuations, fixed asset tracking, and CPA coordination, resulting in delayed tax filings and missed deductions. Our comprehensive year-end service delivered:
Challenges:
- Inventory variances of over $150,000 requiring investigation
- Fixed assets not properly tracked resulting in incorrect depreciation
- Missing accruals causing income statement distortions
- Poor documentation leading to $8,000+ in additional CPA fees
- Late tax filing requiring extension and penalties
Our Solution:
- Implemented comprehensive inventory tracking and adjustment procedures
- Rebuilt fixed asset schedules with proper depreciation calculations
- Established systematic accrual procedures for year-end
- Created detailed CPA workpapers and documentation packages
- Coordinated directly with CPA to streamline tax preparation
Results:
- Inventory variances reduced to under $10,000 through better tracking
- Identified $25,000 in additional depreciation deductions
- CPA fees reduced by $6,000 through better preparation
- Tax filing completed on time without extension
- Year-end close time reduced from 6 weeks to 3 weeks
- Established foundation for efficient ongoing monthly closes
Frequently Asked Questions
When should we start year-end planning? We recommend starting year-end planning in November to allow time for strategic decisions and proper documentation organization.
Do you work directly with our CPA? Yes, we coordinate directly with your CPA to ensure seamless information transfer and efficient tax preparation.
Can you help us with tax planning strategies? While we don’t provide tax advice, we can help implement tax planning strategies recommended by your CPA and identify opportunities for discussion.
What if we haven’t maintained good records during the year? We can help clean up records as part of the year-end process, though this may require additional time and investment.
How do you ensure accuracy in depreciation calculations? We use professional depreciation software and maintain detailed fixed asset schedules that are reviewed by senior staff.
Can you help prepare for an audit? Yes, our year-end workpapers and documentation are audit-ready and can support financial statement audits or IRS examinations.
How much do year-end adjustment services cost? Pricing depends on business complexity, transaction volume, and timing. See our pricing page for year-end service package details, or contact us for a custom quote based on your specific situation.