Books & Records Year-End Preparation

Fall in New England is truly breathtaking and 2006 was no exception.  But as the weather turns colder and we brace ourselves for another long winter, we also want to help firms prepare for year-end.  We know that this time of year can be particularly stressful with holiday preparations and work commitments.   We would like to assist and recommend ways that you can begin planning  for a smooth year end close, so that when the New Year comes, you will be able to stick to your “real” New Year’s resolutions (like those 10 pounds you were supposed to lose last year)….

One of the first things we think about when closing the books for the year is: 

• Do you have stale checks that should be voided? (If so, do not void the check as it then creates prior period entries, but make a journal entry to credit the expense and debit cash.)
• Have you expensed your prepaid items correctly?
• Have you recorded depreciation on your fixed assets?
• Have you properly accrued for expenses such as your annual audit or bonus expense?
• Do all bank reconciliations tie to the Balance Sheet?

In 2005 the SEC stated that any firm having an amended FOCUS as a result of an annual financial audit which reflected a net capital change exceeding $25,000 is subject to significant NASD scrutiny.  We recommend that you try to avoid this by performing a thorough review as described above.  If you would like our office to assist you in this process, please feel free to contact us.

There are many other year-end processes from a compliance perspective that should be considered and Regulatory Compliance can certainly assist your firm with these preparations as well.   

Remember, we are here to help you with all of your compliance needs.  We look forward to a great holiday season!

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