Friday, March 29, 2024

Comprehensive Year-End Closure Checklist for FY 2023-24 Part -2

Comprehensive Year-End Closure Checklist for FY 2023-24

CategoryChecklist ItemAction RequiredDeadline
Accounting-Related Matters1. Verification of Closing StocksPerform physical verification and document stock details by 31.03.202431.03.2024
2. Physical Verification of CashVerify and reconcile cash balance with books31.03.2024
3. Collecting Loan & FD StatementsCollect all loan and FD statements; record accrued interestASAP
4. Reconcile Inter-branch BalancesReconcile balances with branches/subsidiariesBefore Closure
5. Employee Reimbursement SheetsCollect and process reimbursements for FY 2023-24ASAP
6. Collecting Bank StatementsPrepare year-end Bank Reconciliation Statement (BRS)ASAP
7. Recording DepreciationApply depreciation as per relevant Acts on fixed assetsBefore Closure
8. Loan to Directors or Interested PartiesEnsure compliance with Companies Act, 2013 provisionsBefore Closure
9. Bills / Expenses against AdvancesBook expenses pending against advancesASAP
10. Debtors Balance Ageing & ConfirmationPerform ageing analysis and obtain balance confirmationsASAP
11. Trade Payables Ageing & ConfirmationAnalyze and obtain balance confirmations of payablesASAP
12. Provision of ExpensesMake necessary provisions (salaries, utilities, etc.)Before Closure
13. Unsecured Loans InterestBook and confirm interest on unsecured loansASAP
14. Prepaid Expenses AdjustmentCalculate and record adjustments for prepaid expensesBefore Closure
15. GST Adjustment EntriesPass necessary GST adjustments based on GSTR 3BBefore Closure
16. Directors/Partners RemunerationRecord remuneration for Directors/PartnersBefore Closure
Income Tax-Related Matters1. Deduct/Collect TDS/TCSDeduct TDS on year-end provisions, ensure payment by 30.04.202430.04.2024
2. Payment of TaxPay any remaining taxes to avoid interest under section 234BApril 2024
3. Double Check Expenses for TDSVerify and rectify any TDS discrepanciesASAP
4. TDS on Advance PaymentsEnsure TDS on advances is paid where applicableBefore Closure
5. Payments to MSME within 15/45 DaysMake timely payments to MSMEs as per Section 43b(h)ASAP
6. Reconcile Transactions with 26AS/AIS/TISEnsure transactions match with official tax recordsBefore Closure
GST-Related Matters1. Review GST on IncomeConfirm and rectify GST payments or ratesASAP
2. Mandatory E-InvoicingIssue e-invoices if applicable based on turnover thresholdASAP
3. Letter of Undertaking (LUT)Apply for LUT for FY 2024-25 by 31.03.202431.03.2024
4. Download GSTR-2A/2BsDownload and reconcile GSTR-2A/2B reports for input tax creditASAP
5. Reverse GST Inputs if RequiredReverse input credit if payments pending over 180 daysASAP
6. Match GST Ledger BalancesReconcile GST ledgers (Cash, Credit, Liability) with book balancesBefore Closure
7. GST on AdvancesPay GST on advances received for servicesBefore Closure
8. Input Tax Credit ReconciliationEnsure all recorded GST inputs match with GSTR-2A/2BBefore Closure
9. Important GST ReconciliationsReconcile GSTR-3B, GSTR-1 with books; adjust as necessaryBefore Closure
10. Compliance with Section 18(6)Verify compliance for transfers/sales of P&M, consider related party transactionsBefore Closure
11. Rule 42 - ITC ReversalAnnualized computation and reversal of ITC for exempted and taxable suppliesBefore Closure
12. RCM Discharge VerificationConfirm RCM liabilities match entries in GSTR-2ABefore Closure
Other Matters1. ESI/PF RegistrationApply for ESI/PF registration if employee count exceeded thresholdsASAP
2. PF & ESI Payment for MarchEnsure timely payment of PF & ESI dues by 15th & 21st April respectively15.04.2024 & 21.04.2024
3. Professional Tax Payment for MarchPay professional tax dues by the prescribed deadline30.04.2024
4. Compliance with Labor LawsEnsure compliance with applicable labor laws and regulationsOngoing
5. Audit and Compliance ReviewReview and prepare for any audits, ensure compliance with financial regulationsBefore Audit

Key Recommendations:

  • Start early to ensure all tasks are completed efficiently and accurately.
  • Consult with professionals for complex matters, especially tax and compliance issues.
  • Utilize digital tools for reconciliation and reporting to enhance accuracy and efficiency.
  • Keep abreast of any regulatory changes that may impact the closure process.

This checklist aims to provide a thorough roadmap for the financial year-end closure, ensuring all critical tasks are addressed to maintain compliance and accuracy in financial reporting. Tailoring this checklist to your specific business requirements and consulting with professionals when necessary can significantly ease the year-end closure process.