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End of Year Accounting Guide


You’ve reached the end of your fiscal year! We know that tax preparation can be cumbersome. In this article you will find our suggested steps, along with helpful related articles, to assist you in this process. 

For further assistance, we recommend you contact your accountant or a CosmoLex Accounting Partner (CAP). 

Tax Preparation Guide

  1. Reconcile all bank accounts through December 31st – Reconcile Your Bank Account
  2. Run and Review the following reports – Understanding Accounting Reports

    • Review Profit & Loss (P&L), also known as Income Statement – Profit and Loss Report

      • Review income accounts

      • Review expense accounts

    • Review Balance Sheet – Balance Sheet Report

      • Review Asset accounts, with special focus on Advanced Client Costs

      • Review Liability accounts

        • Loans (proper posting of payments)

        • Are balances correct?

      • Review automatic calculation and posting of Retained Earnings, which will be sum of prior year(s) income.

        • If you wish to post prior year’s income to a different equity account, you can use journal entry to shift posting from Retained Earnings to other chart of accounts.
    • Review Trial Balance – Trial Balance Report

    • Review a detailed General Ledger (GL) for the tax year (the GL contains all COA accounts) – General Ledger Report

    • Review Payee/Payor Ledger for each bank account – Payee/Payor Ledger Report

      1. Check payee files to ensure you have Tax ID.

      2. With your accountant, determine who should be issued a 1099

  3. Have your accountant log in directly to your CosmoLex account.  This access will allow him/her to make journal entries and handle other activities in real time.  You can provide your accountant access at no charge to you if he/she participates in our CosmoLex Accounting Partner (CAP) program.  Learn more about our CAP program.

Updated on December 14, 2018

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