Protect Your Close: A Year-End Readiness Guide

Year-end close isn’t just an accounting function. It’s one of the most critical checkpoints your business has to protect its financial integrity, reinforce internal controls, and ensure compliance.

Because here’s the truth: cluttered charts of accounts, outdated access permissions, and unmonitored spreadsheets open the door to risk.

With tax legislation updates, compliance threshold changes, and a variety of reporting standards, financial leaders must take a more proactive, cross-functional approach to year-end.

Year-End Readiness Starts at the Top

Start by asking:

• Is our financial data accurate, accessible, and secure?
• Do we know who owns each step in the close process and do they have what they need?
• Have we updated system permissions and removed unnecessary access?
• Are we confident in our compliance documentation and internal controls?

Make sure to focus on these key areas:

• Tax planning and compliance
• Technology strategy and system stability
• Access to timely, decision-ready data
• Payroll and reporting alignment

The True Cost of Clutter

Year-end comes with a lot of information. Pay attention to:

Financial Cleanups:

• Chart of Accounts: Consolidate and rationalize accounts for clarity and consistency
• Receivables & Payables: Review aging reports for accuracy and potential write-offs
• Fixed Assets: Capitalize purchases per policy and reconcile loans
• Revenues & Expenses: Classify properly and match to 1099/W-2 forms
• Equity & Retained Earnings: Verify balances and close out prior year distributions

Operational Cleanups:

• User Roles: Remove outdated users and enforce least-privilege access
• System Permissions: Review access by function and role
• Workflow Mapping: Identify and reduce bottlenecks or duplication
• Backup Processes: Verify offsite backups and data security measures

Common Year-End Reporting Issues

Even seasoned finance teams need to watch for:

• Incomplete or late reconciliations
• Overreliance on spreadsheets
• Duplicative or outdated accounts
• Misclassified expenses or revenue
• Inconsistent 1099/W-9 documentation
• Gaps in documentation required for audits or compliance

The fix? Standardize workflows, implement close checklists, and evaluate automation opportunities to reduce manual errors.

Here are a few checklists to help ensure you keep track of the items that matter:

Year-End Close After New Tax Legislation

The One Big Beautiful Bill introduces significant changes to a number of business taxation issues.

Key things to consider:

• Update your chart of accounts: Align with any structural updates or new categories recommended under OBBB for more streamlined reporting.
• Assess tax impact early: Work with tax advisors to understand year-end implications of changing tax legislation, new deductions, overtime implications, and more.
• Forecast compliance investments: Budget now for technology, policy, or internal control updates that may be required in 2025.

Don’t Overlook Security in Your Close

Finance data is a top target for cybercriminals, and year-end stress makes it easier for mistakes to happen.

Ask yourself:

• Are we sharing close data securely?
• Who has access to our accounting systems? Is it logged?
• Are multi-factor authentication and access controls enforced?
• Are our backups current, accessible, and tested?
• Are employees trained on phishing, ransomware or other types of threats?
• Have we reviewed internal controls for potential gaps or fraud risks?

Even well-meaning shortcuts, like emailing financial reports or skipping multi-factor authentication, can leave the door open to risk.

Make the Close an Opportunity for Growth

As you close the books:

• Identify where processes or systems held you back.
• Forecast investments needed in technology or risk management.
• Prioritize gaps in roles, training, or documentation.
• Plan for compliance updates and regulatory shifts.

Remember, year-end close doesn’t happen in a vacuum. It works best when it’s collaborative and driven by business goals.

Let’s Turn Year-End Chaos into Year-Round Confidence

At Eide Bailly, we help financial leaders protect the integrity of their year-end close, while embedding better security, stronger compliance, and smarter processes into their operations.

Let’s make this your most efficient and secure year-end close yet.