2023 has come to an end, and the annual year-end close is a top priority for financers. As a financial officer, you can't wait until December to start closing the year-end accounts, you need to pay attention, you should plan in advance, and you should start now. Before closing the accounts, according to the accrual principle, expenses belonging to the current year need to be accrued and recorded. The small meeting sorted out the 8 types of expenses that need to be accrued for everyone to check and fill in the gaps!Year-end bonusIn order to motivate employees and enhance corporate cohesion, many companies will issue year-end bonuses. The year-end bonus mainly includes outstanding employee bonuses, project bonuses, special awards from the sales department, etc. The 2023 year-end bonus will generally be paid in 2024, and it should be calculated in December.
What is the standard for the year-end bonus?
1.If the year-end bonus is linked to the assessment indicators actually completed by the employee, it shall be determined in accordance with the assessment indicators. For example: performance bonuses for salespeople.
2.If there is no assessment standard, it can be calculated with reference to the wishes of the leader, historical issuance standards, etc.
Note:The accrued year-end bonus shall be paid before the final settlement of the following year, and shall not be deducted before tax if it is not paid.
Accounting Treatment:
All kinds of impairments, bad debts, and provisions for price declinesFinance needs to conduct an impairment analysis of each asset at the end of the year and carry out corresponding accounting treatment. It is summarized as follows:
Note 1: Net realizable value refers to the estimated selling price of inventory in the ordinary course of activities, less the estimated costs to be incurred at completion, estimated selling expenses and related taxes.
Note 2: The recoverable amount of an asset is determined based on the higher of the net fair value less disposal costs and the present value of the projected future cash flows.
Note 3: Unapproved reserve expenses shall not be deducted before tax, and shall be adjusted and increased when the final settlement is made.
Fees for which no invoices have been paid have been paidThere are two types of fees that have been paid but have not yet been invoiced:
Scenario 1:
If the enterprise has already paid the expenses in the current year and is expected to obtain the invoice after the year, it should make a good provision for the expenses. Wait until the next year's final settlement to obtain the invoice, after the reversal of the accrued vouchers, according to the actual bills issued.
Accounting Treatment:
Scenario 2:
Due to the loss of contact, bankruptcy, cancellation and other circumstances of the other party, it is impossible to obtain invoices. If the other party has not provided services, etc., a provision for bad debts should be made, and the following information should be provided when deducting before tax:
1.Proof of the inability to reissue, reissue invoices, and other external vouchers (including industrial and commercial cancellation, institutional revocation, inclusion in abnormal business accounts, bankruptcy announcements, etc.);
2.Contracts or agreements related to business activities;
3.Proof of payment by non-cash means;
4.Accounting records and other materials of the enterprise.
Unpaid day-to-day administrative expenses
Expenses that belong to the current year need to be accrued even if they are not paid in the current year, according to the accrual principle. Common ones are: unpaid rent, utility bills, etc. Such expenses shall be paid and obtained before the final settlement, otherwise they cannot be deducted before tax.
Accounting Treatment:
Taxes
The taxes and fees that need to be accrued at the end of the year include: value-added tax, consumption tax, individual income tax, enterprise income tax, urban construction tax, education tax surcharge, local education tax surcharge, stamp duty, etc.
In the last month, the finance department shall calculate and comprehensively inspect the above taxes and fees. Focus on checking the income tax, and adjust the items that cannot be paid before tax and the items with deduction limits (such as welfare expenses, business entertainment expenses, advertising expenses, etc.), and the part that needs to be accrued is accrued.
Examples of accounting treatments:
Salary, social security
According to the accrual principle, the salary and social security premiums belonging to the current month should be included in the cost of the current month, but the salary calculation has a certain lag and is often paid in the next month. Therefore, the finance department should temporarily estimate the amount of wages and social security according to the historical situation in December, and make a good calculation. Accounting Treatment:
Interest expense
Interest is generally accrued first and then paid, for example, interest expenses belonging to December should be accrued in December and paid in January.
Note: The accrued loan interest expense that has not yet been paid due shall not be deducted before tax in the year of accrual, and the accrued interest shall be subject to tax adjustment and increase when the final settlement is made. The interest expense of the loan shall be deducted before tax on the interest payment date agreed in the contract.
Accounting Treatment:
Safety production fee
Construction enterprises shall take the installation cost of construction projects as the basis for accrual and make special reserves for safety production costs. The criteria are as follows:1.Mine engineering is 25%;2.Housing construction engineering, water conservancy and hydropower engineering, electric power engineering, railway engineering, and urban rail transit engineering are 20%;3.Municipal public works, smelting engineering, mechanical and electrical installation engineering, chemical and petroleum engineering, port and waterway engineering, highway engineering, and communication engineering are 15%。
Accounting Treatment:
Before closing the accounts at the end of the year, it is also necessary to check the integrity of the bills and attachments
After the year-end accounts, it is necessary to seal the accounts and bind the vouchers, and if the vouchers are not compliant, it will be more troublesome to remediate and replace. Therefore, the documents and accounting processing that have been recorded should be reviewed before the year, and the accounting processing errors should be adjusted in advance, and the non-compliant documents should be remedied or replaced in a timely manner.
Common businesses are as follows:
Office supplies
There are only invoices for the purchase of office supplies, and no other documents;
Bulk purchase of office supplies, no purchase warehousing and receipt of various departments.
Approved purchase requisitions, invoices, warehousing orders, expenditure vouchers, bank receipts and other related materials.
Travel expenses
Only the travel expense reimbursement form does not have a record such as an itinerary.
Business trip work plan (business trip itinerary), invoice, travel reimbursement form, bank receipt and other related materials.
Shipping costs Courier fees
The courier fee is not signed with the express logistics company;
There is no reconciliation record and internal approval record in the monthly statement.
Consignment transportation agreement, freight settlement, invoice, expenditure voucher and other related materials.
Cash on delivery
The purchase contract, raw material purchase warehousing list, and receipt report are not attached.
The delivery note of the ** merchant is the warehousing order, and there is no warehousing list of the enterprise itself.
Purchase contracts, raw material purchase warehousing lists, receipt reports, invoices, purchase payment orders and other related information.
Procurement and warehousingThe delivery note of the ** merchant is the warehousing order, and there is no warehousing list of the enterprise itself.
The return form is not complete.
Purchase warehousing list, purchase receipt report and other related information.
Asset PurchasesThere are only fixed asset invoices and no other documents;
There is no fixed asset department receipt and it is not possible to determine the specific use department and date.
Approved requisitions, contracts, invoices, warehousing orders, acceptance forms, assets**, expenditure vouchers and other related materials.
Depreciation of fixed assets
If the system is adopted, the monthly depreciation of fixed assets of the system is not printed out as an attachment.
Depreciation of fixed assets and other related information.
The profit for the year is carried forward at the end of the period
At the end of the year,The enterprise should transfer the net profit realized for the whole year from the "current year's profit" account to the "profit distribution - undistributed profit" accountand transfer the balances of other relevant active accounts under the "Profit Distribution" account to the "Undistributed Profit" active account.
After the carry-forward, the credit balance of the "Undistributed Profit" detail account is the amount of accumulated undistributed profit, and in the case of a debit balance, the amount of accumulated uncovered loss. After the carry-forward, there should be no balance in the current year's profit account except for the "undistributed profit" detailed account.
Borrow: Profit for the current year.
Credit: Profit Distribution – Undistributed Profits.
Or. Debit: Profit distribution - undistributed profits.
Credit: Profit for the year
Don't forget before closing the bill at the end of the year.
Before closing the accounts, check and calculate the tax situation of the enterprise!
1. Check whether there are any errors or omissions in the calculationBefore the year-end carryover, the various taxes and fees of the current year should be sorted out once to check whether there are calculation errors or omissions. For regular taxes, enterprises generally file on time every month or quarter, but for some infrequently occurring taxes, such as stamp duty, they may be missed.
2. Whether the relevant accounting subjects hide tax risksBefore the year-end carryover, the various taxes and fees of the current year should be sorted out once to check whether there are calculation errors or omissions. For regular taxes, enterprises generally file on time every month or quarter, but for some infrequently occurring taxes, such as stamp duty, they may be missed.
3. Reasonable enjoyment of preferential policiesThe state has introduced a number of preferential tax policies this year, and financial personnel should actively pay attention to and make reasonable use of these policies to serve enterprises. For example, after the profit and loss are carried forward at the end of the period, financial statements are generated to measure whether the enterprise meets the criteria for the identification of small and low-profit enterprises.