Essential Tips for Your Financial Statement Audit/Review

The holiday season isn’t just about decking the halls—for those companies with calendar year ends, it’s also the perfect time to get financial records in order for your upcoming financial statement audit or review! Preparing early can bring peace of mind and ensure a smoother process as you wrap up the year. Here’s how you can sleigh your year end with some festive flair:

1. Check Your Financial “Nice List”: Start by organizing your “nice list” of financial records, including income statements, balance sheets, and cash flow statements. Well-kept records can help ensure a very merry year-end closing process.

2. Gather Gift-Worthy Documentation: If your company has an upcoming financial statement audit or review, be ready to present supporting documents for your financial statements. Aim to have your reconciliations, contracts, loan agreements, and payroll reports complete and wrapped up timely.

3. Spruce Up Your Accounting Policies and Controls: Review your accounting policies and procedures as well as your company’s internal controls to ensure they sparkle like holiday lights. If there have been any changes throughout the year, document them clearly and share the updates with your audit/review team. Common changes include: accounting personnel, service providers, software, and organizational structure.

4. Resolve Naughty List Issues: Identify and address any unresolved financial issues before your audit or review begins. Just like fixing those burnt-out bulbs on a string of lights, troubleshooting problems early makes for a smooth year-end close process.

5. Engage with Your Audit/Review Team: Foster open communication with your audit/review team. Similar to sending holiday greeting cards, keep them informed of any significant changes in your business, industry trends, or challenges you may be facing. This collaboration enhances the efficiency of the audit/review process.

By implementing these festive tips, you can streamline the preparation of your year-end close process, which aids in a solid foundation for your upcoming financial statement audit or review. Cheers to wrapping up the year with confidence. Happy Holidays from the audit team at Wilkins Miller!