Best Practices for Financial Year-End Transition

Year-End Reminders! It’s getting close to year-end which means there are annual requirements that are helpful to get a jump on. Here’s a checklist to be proactive so they don’t ruin your holidays: 1. Call your tax accountant to align on any year-end strategies. Timing can make a big difference. 2. 1099s & W-9s Make sure you have all your vendor information and W-9s on file for anyone directly paid more than $600 this year. Now’s also the time to get any missing Certificates of Insurance if you require them. 3. Accruals Don’t let January invoices land in the wrong year. Legal fees, contractors, COGS, and employee reimbursements are the usual culprits. 4. Budget vs Actual How did you do this year? Any surprises in margin, spend, or burn? Adjust your 2026 forecast accordingly. 5) Bonuses & Commissions Accrue what’s owed, even if it’s paid in January. Check your payroll platform cutoff dates. 6) Deferred Revenue & Prepaids If you’re accrual based and not tracking it monthly, make sure your year-end revenue is correct.  Work you’ve been paid for, but not yet delivered, should be booked as deferred revenue. Revenue timing matters for both financial reporting and decision-making. 7) Cap Table  Make sure grants are approved and documented. Confirm your cap table ties to the balance sheet. 8) Inventory & COGS If you carry inventory: • Perform your year-end physical count • Accrue unpaid vendor invoices • Write down obsolete inventory. 9. Contracts & Renewals Check for auto-renewals or expiring agreements. Now’s the time to renegotiate or cancel what’s not needed in 2026. 10. Internal Controls Review who has access to bank accounts, payroll, and platforms. Remove anyone who shouldn’t still have it (especially ex-employees). 11) Board-Ready Financials Start building your year-end package: • Financial Statements • Actuals vs. budget • Cash runway • Key metrics and narrative • 2026 Budgets for board approval 12. Cash & Headcount Planning / Runway Extend your cash forecast through Q2 or Q3. Lock in hiring plans (or freezes) and make sure all teams are on the same page. Have I missed anything? _______________________________________ I work with founders, CEOs, and exec teams during growth, transition, or when finance just needs some experienced help. If you want support closing the year or getting 2026 forecast ready -  reach out. Let's get it sorted. #CFO #FractionalCFO #StartupFinance #YearEndClose #FounderOps

Q4 isn’t the time to play catch-up. It’s the time to get ahead. Q4 exposes whether Finance is leading or lagging. The end of the year brings pressure, but also opportunity. A strong Q4 sets you up for tighter controls, sharper decision-making, and a stronger start to a new year. Here's 5 areas to clean up before year-end and why they matter: 1. Follow up with internal & external business partners Don’t wait for auditors or regulators to call you. Schedule meetings with auditors, regulators, banking partners, and legal counsel before year-end. These conversations help you: • Share notes and close any gaps proactively. • Address disclosure questions now instead of in crunch time. • Treat service providers like strategic partners so your company ends Q4 strong and enters Q1 positioned for growth. Companies that do well prepare before the deadline hits. Companies that struggle wait for surprises. 2. Review key general ledger accounts The general ledger is where small errors hide and big problems begin. • A year-end cleanup should: • Locate and correct errors. • Eliminate outdated or immaterial entries. • Protect against fraud ensuring everything is valid and documented. Clean books mean no surprises for you or your auditors. 3. Assess the value of assets Two-thirds of CFOs plan to allocate or reallocate capital next year. But you can’t plan investments without knowing the true value of what you already own. Use Q4 to: • Review both long- and short-term assets. • Apply GAAP impairment testing rules. • Take write-downs now instead of being surprised later. Consistent accurate valuations drive smarter capital deployment. 4. Analyze significant accrual accounts Accruals can easily distort financial statements if not reviewed carefully. The risks increase when large projects cross over fiscal years. Use Q4 to: • Review estimates and ensure accruals are supported. • Contact large service providers so expenses are accounted for properly. • Ensure accruals reflect the company’s true financial position. This step avoids any January shock of misstated obligations. 5. Audit internal controls Strong controls aren’t just about compliance, they build trust in your numbers. Testing your controls now allows you to: • Identify weaknesses before external auditors arrive. • Strengthen reporting effectiveness going into the new year. • Build confidence across leadership and stakeholders. A surprise control deficiency in Q1 can be prevented now. Q4 isn’t just about wrapping up the year. It’s about sharpening your financial edge. Finance leaders who own Q4 close the year, and set the pace for the next one. Where is your finance team ahead, and where are you still playing catch-up? ___________ Please share your thoughts in the comments. Repost if this will help someone in your network. Follow me, Beverly Davis for more finance insights.

Are your books actually ready for year-end or just “good enough”? 👀 As the year comes to a close, many business owners feel pressure to wrap up their books as quickly as possible. But year-end bookkeeping isn’t about rushing. It’s about clarity, accuracy, and setting yourself up for a strong start to the new year. Clean books at year-end help you: ✔ Understand how your business truly performed ✔ Start January without confusion ✔ Avoid months of cleanup later ✔ Make confident, informed decisions What “Clean Books” Really Mean Clean books don’t mean perfect. They mean your records are accurate, up to date, properly categorized, reconciled, and free of lingering unknown balances. Clean books allow your financials to tell a clear, reliable story about your business. How to Clean Up Your Books Before Year-End 1. Reconcile bank and credit card accounts Make sure all accounts match what actually cleared the bank. Review outstanding items and resolve old differences—this step confirms your books match reality. 2. Review Accounts Receivable (who owes you money) Identify overdue invoices, determine what’s truly collectible, and clear inactive customers so you know what cash you can realistically expect. 3. Review Accounts Payable (what you owe) Check unpaid bills, duplicate vendor balances, old credits, and long-outstanding payables to avoid cash flow surprises in January. 4. Clear suspense and “Ask My Accountant” accounts Every uncategorized transaction should be identified and properly classified. Letting these accounts grow weakens your reporting. 5. Review owner activity and personal charges Ensure withdrawals, distributions, and personal expenses paid by the business are classified correctly so income isn’t overstated or understated. 6. Review inventory (if you sell products) Verify quantities, account for damaged or missing items, adjust for shrinkage, and remove obsolete products. Inventory accuracy directly impacts profit. 7. Review fixed assets and equipment Remove assets no longer in use and confirm large purchases were recorded correctly. 8. Make sure December is fully posted All income and expenses should be entered, bank activity updated, and late charges included before closing the year. The Bottom Line Cleaning up your books before year-end allows you to enter the new year with clarity instead of confusion. When your accounts are reconciled and reviewed, your business starts the year on solid financial ground—not playing catch-up. 📩 Lazar Accounting Solutions Sandra@lazaraccounting.com #SmallBusinessBookkeeping #YearEndBookkeeping #CleanBooks #BusinessFinance #EntrepreneurSupport #BookkeepingSupport

Most investors think tax planning is April’s problem. That’s how they lose serious opportunities every December. Here’s how to create year-end alignment, and keep more of what you’ve earned: STEP 1 – Know your real tax position → Guessing invites penalties → Calculate Q4 now, adjust proactively → Waiting means scrambling under pressure STEP 2 – Capture expiring deductions → Bonus depreciation drops January 1 → Cost segregation studies take time → The deadline isn’t April, it’s now STEP 3 – Review entity structure based on income → High W2? S Corp might help → Passive losses? Match with passive income → Adjust structure before year-end, not after STEP 4 – Layer in lifestyle deductions → Business travel, car use, phones, kids, yes, kids → But only if structured properly and documented → Use what the tax code legally allows STEP 5 – Sync tax planning with life goals → Don’t just cut taxes, build momentum → Align every move with your vision for wealth → Strategy is only useful if it supports your life Which move are you still sitting on, with less than two months left in the year?

As we approach the new fiscal year, RevOps leaders face a unique challenge: we're simultaneously closing out this year's initiatives while architecting next year's foundation. Here's what separates good FY planning from great FY planning: Start with brutal honesty about what's broken. Before you plan new initiatives, audit what's not working. That CPQ implementation with 5% adoption? The Marketo instance that's been "in progress" for months? These don't magically fix themselves in January. Address them now or explicitly de-prioritize them. Map dependencies before commitments. Revenue operations doesn't exist in a vacuum. Your Q1 roadmap needs buy-in from Sales, Marketing, ITS, and Finance. I've learned the hard way that a beautiful RevOps strategy without cross-functional alignment is just expensive PowerPoint. Build organizational capacity into your plan. Your team's bandwidth is your constraint. If you're planning to onboard new team members in Q1, factor in the reality that they won't be fully productive for 60-90 days. Don't stack critical initiatives against organizational transitions. Get religious about stack ranking. You can't do 14 things in Q1. You can do 3-4 things well. Force-rank everything by business impact and be prepared to defend your top three to leadership. Everything else goes on the "not now" list. Document your current state obsessively. Six months from now, you'll need to prove what changed and why. Baseline your metrics now: adoption rates, data quality scores, process cycle times, rep productivity. Future you will thank present you. The fiscal year transition isn't just about planning—it's about creating the organizational muscle memory that carries your team through the chaos of Q1. What's your biggest RevOps priority heading into the new fiscal year? #revops #2026 #fiscalplanning

Before 31st March, don’t just close the financial year. Close it smartly. As the financial year comes to an end, many individuals and business owners rush into last-minute tax planning. Unfortunately, rushed decisions often lead to missed deductions, unnecessary tax outflow, or compliance issues later. A proper year-end financial review can make a significant difference. Before 31st March, make sure you review these key areas: ✔ Tax saving investments (if following the old regime) ✔ Capital gains from shares, mutual funds or property ✔ Pending advance tax liability ✔ Whether the old or new tax regime is more beneficial ✔ Reconciliation of business books and GST records Taking these steps now can help you avoid penalties, optimize tax liability, and maintain clean financial records for the next year. Financial planning is not just about compliance. It is about making informed decisions at the right time. #TaxPlanning #FinancialYearEnd #TaxStrategy #CharteredAccountant #BusinessCompliance #GSTCompliance #AdvanceTax #FinancialPlanning #VirtualCFO

Many high earners lose up to five figures from poor tax planning. Here’s what to check before year-end: →Equity compensation Plan for taxes on RSUs, ESPPs, NSOs, and ISOs before exercising or selling. → Tax diversification Spread assets across pre-tax, Roth, and taxable accounts for flexibility. → Charitable donations Lump-sum giving can help you exceed the standard deduction and increase tax efficiency. → Tax-loss harvesting Offset gains, deduct up to $3,000 in losses, and clean up your portfolio. → Roth conversions Move funds from pre-tax to Roth when markets or income are lower. → HSAs Triple tax benefit: pre-tax contributions, tax-deferred growth, and tax-free withdrawals for qualified expenses. → 401(k) optimization Choose pre-tax or Roth contributions based on your current vs. future tax outlook. → 529 plans Tax-free growth, Roth rollovers, and the ability to front-load 5 years of contributions. →Real estate Use 1031 exchanges, expense write-offs, and other strategies to reduce taxable income. → Gifting Annual exclusion is $19,000 per person in 2025; larger gifts tap into your lifetime exemption ($13.99 million per individual and $27.98 million per marriage). The earlier you review, the more options you’ll have before December 31st. Which one of these will you be tackling first?

If your company’s year-end is December 31, now is the time to get ready for the annual audit. Proper preparation shows you're organized, competent, and professional. Here’s a simple checklist to help you prepare: 🟠 KNOW THE AUDIT SCOPE 🔸 Review the audit engagement letter to understand what the auditors will check, the timeline, and what they need. 🔸 If you haven’t received this year’s letter, use last year’s as a guide. 🟠 REVIEW AND RECONCILE ACCOUNTS 🔸 Match all bank account balances with company records. 🔸 Check that accounts payable and receivable are accurate. 🔸 Review payroll records and tax liabilities. 🟠 UPDATE FINANCIAL RECORDS 🔸 Reconcile inventory records with your accounts. 🔸 Ensure your general ledger, trial balance, and financial statements are complete and accurate. 🔸 Post all adjusting journal entries. 🟠 GATHER SUPPORTING DOCUMENTS 🔸 Prepare schedules like the fixed asset register, inventory valuation, loan schedules, and payroll reports. 🔸 Organize receipts, invoices, contracts, and agreements in one place. 🔸 Label and tag documents for easy reference. 🟠 CHECK INTERNAL CONTROLS 🔸 Document how your internal processes safeguard financial accuracy. 🔸 Highlight any changes in processes since the last audit. 🟠 HANDLE TAXES AND COMPLIANCE 🔸 Gather proof of all tax filings and payments. 🔸 Confirm compliance with regulatory requirements. 🔸 Match tax returns with tax records. 🟠 ADDRESS LAST YEAR’S ISSUES 🔸 Review the previous audit report to fix any unresolved issues. 🔸 Document improvements made based on the auditor’s recommendations. 🟠 RUN A MINI AUDIT 🔸 Review your financial statements to catch potential errors. 🔸 Practice answering common audit questions with your team. 🔸 Double-check compliance with accounting standards and regulations. 🟠 TEST BACKUPS AND IT SYSTEMS 🔸 Make sure all financial data is backed up and accessible. 🔸 Verify that IT systems are working properly and can handle the audit. 🟠 WORK WITH OTHER STAFF 🔸 Explain the audit process to all departments. 🔸 Assign roles to staff to assist with auditor requests. 🔸 Remind everyone that their cooperation is essential for a successful audit.   Also remember to prepare a comfortable and secure workspace, physical or virtual for auditors to access documents securely. Lastly, stay calm and confident when answering questions; remember, auditors are accountants too. You might even know more than they do! Being organized and prepared sets the tone for a smooth audit process.

This New Year, resolve to achieve the trifecta of finance transformation: a faster close for greater business agility, reduced manual effort to unlock strategic capacity, and stronger internal controls for complete confidence in your numbers. It’s not three separate resolutions—it’s one strategic imperative. Use this proven framework to shorten your close, enhance controls, and empower your team to transform from historical scorekeeper to strategic business partner. 1. 📣 Secure an Executive Mandate Successful transformation begins with a clear directive from leadership. Communicate the strategic imperative of a faster, more controlled close to secure organizational alignment and resources. 2. 👥 Assemble a Dedicated Process Optimization Team Form a fully dedicated team with deep expertise in accounting, business operations, and your key financial technologies (ERP, BlackLine, etc) to drive the initiative with a focus on process optimization. 3. 📋 Conduct a Task Inventory Perform an inventory of close-related tasks. The objective is to identify and eliminate redundant, low-value, and manual activities that consume valuable time and resources. 4. 🔗 Map Dependencies & Identify Bottlenecks Analyze the critical path of the close by mapping all process dependencies to uncover the true sources of delay and allow for targeted remediation of bottlenecks. 5. ⚖️ Define & Enforce Materiality Implement clear, standardized materiality thresholds. This empowers your team to focus on high-risk areas and reallocate capacity from insignificant items to critical analysis. 6. 🎯 Prioritize with The BlackLine Nine Framework Utilize The BlackLine Nine to categorize processes. This allows you to pinpoint which process families (e.g., Accruals, Intercompany, Cash) are causing the most significant delays, showing you where to focus optimization efforts. 7. 🚀 Optimize & Automate in Phases With clear priorities, execute a phased strategy with short, milestone wins. Applying the 7 Steps to Process Optimization to standardize and automate similar tasks in groups achieves scalable gains and allows you to celebrate along the way. 8. 📈 Establish & Track KPIs Define 3-5 Key Performance Indicators to measure progress. Metrics such as Days to Close, Percentage of Automated Journal Entries, and Late Adjustments will demonstrate ROI and guide continuous improvement. By following this methodology, you can move beyond the constraints of a traditional close and unlock the full potential of a Modern Accounting operation. Ready to begin your transformation? Join our complimentary BlackLine Optimization Academy to get started. https://lnkd.in/eFzV2uUk What's one area of your close process you're targeting for improvement this year? Share in the comments! 👇 #FinanceTransformation #ModernAccounting #FinancialClose #CloseOptimization #BlackLine #DigitalTransformation #Controller #CFO #FinanceLeadership #LeadingPractices #BlackLineNine #7Steps