The finance department is the busiest time of the year, from the end of the year to the beginning of the next year, in the months to complete the annual settlement, annual audit, annual review, tax final settlement, work summary, etc., of which the annual settlement is the most urgent need to complete the key content.
The specific matters involved in the annual settlement are relatively trivial, involving the inventory and inspection of various subjects, etc., by subdividing the settlement work into key matters, grasping the key points, and improving the efficiency of the annual settlement work on the premise of ensuring the quality of accounting.
Income: Determine whether you should or shouldn't do it
The key to income matters is simply the recognition of what should be recognized and the non-recognition of what should not be recognized. Should ticketless revenue be recognized?Should intertemporal income be recognized?Does the advance receipt meet the revenue recognition criteria?Is it possible to fully recognize revenue for advance invoicing?Is the ongoing project able to determine the completion schedule and thus recognize revenue?Does the framework contract have an instatement statement as a basis for revenue recognition?If it is necessary to allocate revenue for revenue recognition, are the allocation rules reasonable and comply with the revenue recognition principle?Is there a contract, settlement statement, recharge consumption history, etc. as a basis for revenue recognition?
When an enterprise operates multiple businesses, are there any differences in the revenue subdivisions corresponding to different business accounting?Does it correspond to customers, projects, and departments?Do different businesses apply different revenue recognition principles?When multiple services are provided under the same contract, is the contract amount apportioned among different services?Is the revenue generated by the related business between enterprises fully documented?
Cost: Complete is neither more nor less
The record of costs and expenses is complete, that is, it cannot be omitted or overrecorded. Are project costs fully aggregated and carried forward according to the completion schedule?Are production costs recorded and allocated accurately?Are there any large costs that have been incurred but have not been approved?Are no-ticket expenditures recorded?Is there a substitute ticket?Is the expense exceeding the budget?Can the cost be corresponded to the customer and the project?Is there a large number of business travel expenses, entertainment expenses, etc. that have not been reimbursed?
On the other hand, completeness is reflected in the integrity of the original voucher, whether it can form a chain of evidence to prove the authenticity of the businessIs there an invoice for the cost and expense?Is the invoice genuine?Is the invoice amount consistent with the contract, approval form, and bank statement?Is the reason for the missing invoice reasonable?Are the invoice items consistent with the business substance?Is there a situation where the invoice has been paid but has not been received?
Funding: Sort out the ins and outs
Capital is the "blood" to maintain the operation and survival of the enterprise, and the combing of the balance of funds and income and expenditure will help financial personnel to better grasp the financial situation of the enterprise.
The first is to take stock of the balance of funds, which can directly understand the current precipitation funds of the enterprise and evaluate the cash flow situation. How many bank accounts does the business currently have?Is there a balance of funds on other third-party platforms such as WeChat and Alipay?Does the balance of each account match the statement?Are there negative account balances due to bookkeeping errors?Is there a balance that needs to be closed no longer in use?Is there any special or fund-raising funds that are restricted in use?Is the balance of funds on the third-party platform withdrawn and carried forward on time?Has the cash been counted, and is the inventory amount consistent with the book amount?
Secondly, it is necessary to sort out the income and expenditure of funds, and grasp the funds of enterprises and the whereabouts of funds. Check whether there is any abnormality in cash flow and whether there are mistakes or omissions through the auxiliary accountIs the capital turnover of the enterprise normal?What are the main aspects of the company's capital expenditure?Is the operating cash flow able to sustain the business?Was there any new external financing during the year?
Fixed Assets, Intangible Assets and Inventories: Inventory, Appraisal + Disposal
Enterprises hold fixed assets and intangible assets for the purpose of maintaining normal operations to obtain income, so it is necessary to consider whether the assets can be operated normally to bring positive profit inflow.
It is important to pay attention to whether the fixed assets are in normal useDo I need to deal with it if it doesn't work properly?Is the remaining useful life reasonable?Has there been a change in the way assets generate income?Do I need to adjust the depreciation proposal for fixed assets?Is the depreciation of fixed assets properly accrued?Through the inventory, the number of fixed assets is cleared, the asset status is evaluated, the use department is determined, the inventory results are checked with the book records, and the treatment plan is determined according to the situation.
Intangible assets are difficult to assess due to the lack of entities. For the purchase of intangible assets, the remaining useful life needs to be assessed according to the service life agreed in the purchase contract and the service life judged according to the actual situationThe useful life of intangible assets generated by self-research needs to be comprehensively judged based on technological development, industry conditions, corporate strategies, etc., and the length of service life will affect the amortization results. The valuation of goodwill will be more complicated, and it is necessary to evaluate the value of the acquired enterprise to determine whether there is an impairment.
Enterprises hold inventory in order to obtain profits and cash flow, so the value of inventory is what needs to be paid attention to. Is the inventory well classified?Is there a special person and a special place for storage and management?Is there a discrepancy between the inventory count results and the book records?Has the value of inventories depreciated?The reason for the depreciation is due to poor management or the long-term inventory overstockDoes the depreciated inventory need to be disposed of?Is the principle of provision for inventory impairment reasonable?Is the impairment amount calculated accurate?Is there a special situation that requires a large impairment provision for a single inventory?
Transactions: Liquidation of overdue and long-term transactions
Current accounts include accounts receivable, accounts payable, accounts receivable, accounts receivable, prepayments, other receivables, and other payables, and the balances in these accounts need to be checked and processed differently according to different situations.
Do accounts receivable correspond to customers?Is there an abnormality in the customer's balance?Ability to perform aging analysisIs there a balance that is out of the payment period or at risk of bad debts?Have you started to deal with such accounts receivable, such as sending reminder letters, lawyer's letters, etc.?Is there a provision for bad debts?Is the proportion of bad debts reasonable?Is there an account receivable that needs to be separately accrued for bad debts?
Does the prepaid account meet the conditions for carrying forward costs and expenses?Did you receive a product or service from the other party?Does a long-outstanding project require a balance to be cleared?
Reasons for the formation of other receivable balances?Whether there are personal loans and reserves, and whether the amount exceeds the provisions of the enterprise system?Will personal borrowings and reserves be paid back at the end of the year?Is there a deposit or security deposit that has been paid?Does the deposit and security deposit meet the conditions for refund?Is there an unrecoverable amount?
Does Accounts Payable enable Merchant-Aided Accounting?Is there a mistake?Is there a long-term account that does not need to be paid?Do these payments need to be approved?Other reasons for the formation of payables?Do I need to return the deposit or security deposit collected?Do payments that don't need to be processed need to be processed?
Are current accounts reclassified in the report?Do current accounts for the same customer need to be offset or carried forward?Are the transactions between affiliated enterprises fully recorded?The inspection of current accounts is to avoid misremembering, especially the collection errors of customers, merchants and projects, and the cleaning is to deal with long-term projects in a timely manner, restore the real current situation, and avoid distortion of financial data.
Investment: Obtain the investee's information in a timely manner
The foreign investment of enterprises generally includes financial assets and equity investment, holding financial assets in order to obtain interest or income through **, and equity investment in order to obtain dividends or form control of the invested company to expand business and enhance enterprise value.
Financial assets need to be classified according to the actual situation, and whether the classification is accurate will affect the accounting of financial assets and ultimately affect the data of financial statementsIt is necessary to obtain the value of financial assets from the corresponding channels to assess whether there is impairment and whether the provision for impairment is reasonable.
Equity investment needs to confirm the accounting method, whether it is the cost method or the equity methodObtain financial statements from the invested enterprises in a timely manner, understand the operation of the invested enterprises, and record the changes in equity investment and income.
Tentative estimate: Reasonable
At the end of the year, due to special circumstances, it is necessary to carry out a provisional valuation of income, cost, inventory and other accounts, such as inventory that has been put into storage but has not received invoices, income that has been provided but the customer has not confirmed the statement, etc., and the provisional valuation entry needs to be reasonable and evidence-based, and cannot be abused for the purpose of profit adjustment, tax evasion, etc.
The provisional estimate can be based on the supply list to the customer, the customer's consumption or usage data displayed in the business platform, the inventory warehousing list, the expense approval form in the process, the year-end bonus calculation table, etc., and the provisional estimate can be recorded at the end of the year. Provisional accounting without basis distorts financial data and increases tax risks, which will lead to a series of problems, and business operators and financial personnel need to bear corresponding responsibilities.
Tax: Deduction items are sorted out
When calculating the annual income tax, some items cannot be paid before tax, some items have a pre-tax deduction ceiling, and some items need to consider the issue of deferral, and the specific amount will be determined at the time of year-end final settlement, but it also needs to be considered in the annual settlement.
Do advertising and publicity expenses, business entertainment expenses, trade union expenses, employee education expenses, welfare expenses, etc. exceed the deduction limit?Are R&D expenses separately?Does it meet the conditions for additional deduction of R&D expenditure?Are there any costs, penalties and late fees that cannot be charged before tax?Are donation expenditures tax-exempt?It is necessary to calculate the income tax according to the idea of income tax final settlement and understand the tax burden of the enterprise.
In addition, it is also necessary to check whether the various taxes that the enterprise needs to pay are accruedIs the amount of VAT and other taxes paid, the amount incurred and the balance consistent with the tax return and tax payment form?Does the income without tickets truthfully declare and pay VAT and additional tax?
Reports: Examine changes in financial metrics
The financial statements need to reconcile the report data with the account balance sheet to check whether there are any errors in the number of statements in the reportWhen the group statements need to be consolidated, check whether there are any errors or omissions in the transaction records between related enterprises through related party transaction offsetUse the similarities and differences in the data of the related accounts between different reports to check whether there are problems with the accounting data.
At the same time, you can also use some changes in basic financial indicators to check the data, such as asset-liability ratio, gross profit margin, net profit margin, cash ratio, these ratios are easy to calculate, when the business operation is relatively stable, such financial indicators will not fluctuate greatly, if there is an abnormality, you need to find the reason, it may be due to the error of the accounting account or the number of indicators change, need to be corrected in time.
Financial statements facilitate financial personnel to check and evaluate financial data from an overall perspective, and discover possible accounting errors through the correlation between data.
The annual settlement work is busy and busy, but it is necessary to keep the chaos in order, and the development of a simple work list or self-check list can reduce errors and omissions in accounting, improve the quality and efficiency of accounting, and speed up the progress of annual settlement work. The annual settlement is only the beginning of a series of important work at the end of the year, and doing a good job in the annual settlement is the premise and foundation for the follow-up work.