Year-End Financial Close Checklist for SMEs

The 10-step close checklist

1. Freeze transaction entry for the prior period — no new postings without formal adjustment request
2. Reconcile all bank accounts to 31 March statements — clear items outstanding over 60 days
3. Reconcile all receivable ledgers — age debtors, confirm material balances, provision for doubtful debts
4. Reconcile all payable ledgers — match supplier statements, record GRNI accruals for pre-March services
5. Complete fixed asset review — reconcile register to GL, charge depreciation, review disposals and capital vs revenue
6. Review and record all accruals and prepayments — audit fees, bonuses, insurance prorating, utilities
7. Reconcile payroll and statutory contributions — salary expense matches GL, EPF/ETF/APIT payable balances reconciled
8. Review intercompany and related-party balances — confirm arm's length pricing, disclose material transactions
9. Review tax provisions — calculate taxable income, apply correct rate (30% standard or 14% qualifying SME), confirm SSCL
10. Prepare financial statements and supporting schedules — full LKAS/SLFRS set with notes

Payroll-to-ledger reconciliation detail

The payroll close is often treated as separate from the financial close, but the two must agree.

• Total salary expense per payroll records matches the salary expense in the general ledger
• EPF payable account balance matches the amount outstanding from March (payable in April)
• ETF payable similarly reconciled
• APIT payable balance reconciled to the last remittance and any outstanding balances
• Employer contribution expense fully accrued for all 12 months including March

Timeline for March year-end companies

Common year-end close errors to avoid

• Making accruals before reconciliation is complete — creates double-counting
• Processing April transactions into March — strict period controls prevent this
• Carrying over prior-year provision balances without review — release if no longer required
• Missing the bank cut-off — cheques sent before 31 March but not presented until April
• Forgetting SSCL — confirm the liability as at 31 March is fully captured