It is hard to believe that 2018 is almost over! With the rolling of the calendar comes the need to close out the accounting year, prepare for annual reports and prepare for a strong start to the upcoming year. There are some things to consider now to make the year-end process easier and ease your workload in 2019. Below is a year-end checklist to consider. In addition, please consult the year-end duties set forth in the State Board of Accounts bulletins.
A thorough analysis of your detailed transactions' completeness, accuracy, reasonableness and consistency will benefit your government. For example, if you record eleven monthly utility bills to your utility expense line and one monthly utility bill to your miscellaneous account, now is the time to process the correction.
Review unpaid purchase orders and contracts from 2018 and determine if appropriations need to be encumbered. Remember, all appropriations expire on December 31, 2018 and are replaced with the new appropriations on January 1, 2019. The only exception is properly executed encumbrances.
The State Board of Accounts provides guidance on how to cancel old checks, but for year-end planning purposes, this is a good time to review HOW to do that in your individual accounting systems. Reading the manual today saves you a scramble drill next year.
Unused accounts and funds clutter up reporting. This is a good time to consider those issues and brush up on the processes to make accounts inactive within your accounting system and to officially declare funds dormant.
Transfers in = transfers out. No exceptions. Check them now or at the last minute on March 1. Your choice.
This is a brief list to help you get started. Please remember to refer to the help guides from your accounting systems and State Board of Accounts bulletins to finish 2018 and get off to a good start in 2019.
For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team.
Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm.