Comprehensive Year-End Closure Checklist for FY 2023-24
| Category | Checklist Item | Action Required | Deadline |
|---|---|---|---|
| Accounting-Related Matters | 1. Verification of Closing Stocks | Perform physical verification and document stock details by 31.03.2024 | 31.03.2024 |
| 2. Physical Verification of Cash | Verify and reconcile cash balance with books | 31.03.2024 | |
| 3. Collecting Loan & FD Statements | Collect all loan and FD statements; record accrued interest | ASAP | |
| 4. Reconcile Inter-branch Balances | Reconcile balances with branches/subsidiaries | Before Closure | |
| 5. Employee Reimbursement Sheets | Collect and process reimbursements for FY 2023-24 | ASAP | |
| 6. Collecting Bank Statements | Prepare year-end Bank Reconciliation Statement (BRS) | ASAP | |
| 7. Recording Depreciation | Apply depreciation as per relevant Acts on fixed assets | Before Closure | |
| 8. Loan to Directors or Interested Parties | Ensure compliance with Companies Act, 2013 provisions | Before Closure | |
| 9. Bills / Expenses against Advances | Book expenses pending against advances | ASAP | |
| 10. Debtors Balance Ageing & Confirmation | Perform ageing analysis and obtain balance confirmations | ASAP | |
| 11. Trade Payables Ageing & Confirmation | Analyze and obtain balance confirmations of payables | ASAP | |
| 12. Provision of Expenses | Make necessary provisions (salaries, utilities, etc.) | Before Closure | |
| 13. Unsecured Loans Interest | Book and confirm interest on unsecured loans | ASAP | |
| 14. Prepaid Expenses Adjustment | Calculate and record adjustments for prepaid expenses | Before Closure | |
| 15. GST Adjustment Entries | Pass necessary GST adjustments based on GSTR 3B | Before Closure | |
| 16. Directors/Partners Remuneration | Record remuneration for Directors/Partners | Before Closure | |
| Income Tax-Related Matters | 1. Deduct/Collect TDS/TCS | Deduct TDS on year-end provisions, ensure payment by 30.04.2024 | 30.04.2024 |
| 2. Payment of Tax | Pay any remaining taxes to avoid interest under section 234B | April 2024 | |
| 3. Double Check Expenses for TDS | Verify and rectify any TDS discrepancies | ASAP | |
| 4. TDS on Advance Payments | Ensure TDS on advances is paid where applicable | Before Closure | |
| 5. Payments to MSME within 15/45 Days | Make timely payments to MSMEs as per Section 43b(h) | ASAP | |
| 6. Reconcile Transactions with 26AS/AIS/TIS | Ensure transactions match with official tax records | Before Closure | |
| GST-Related Matters | 1. Review GST on Income | Confirm and rectify GST payments or rates | ASAP |
| 2. Mandatory E-Invoicing | Issue e-invoices if applicable based on turnover threshold | ASAP | |
| 3. Letter of Undertaking (LUT) | Apply for LUT for FY 2024-25 by 31.03.2024 | 31.03.2024 | |
| 4. Download GSTR-2A/2Bs | Download and reconcile GSTR-2A/2B reports for input tax credit | ASAP | |
| 5. Reverse GST Inputs if Required | Reverse input credit if payments pending over 180 days | ASAP | |
| 6. Match GST Ledger Balances | Reconcile GST ledgers (Cash, Credit, Liability) with book balances | Before Closure | |
| 7. GST on Advances | Pay GST on advances received for services | Before Closure | |
| 8. Input Tax Credit Reconciliation | Ensure all recorded GST inputs match with GSTR-2A/2B | Before Closure | |
| 9. Important GST Reconciliations | Reconcile GSTR-3B, GSTR-1 with books; adjust as necessary | Before Closure | |
| 10. Compliance with Section 18(6) | Verify compliance for transfers/sales of P&M, consider related party transactions | Before Closure | |
| 11. Rule 42 - ITC Reversal | Annualized computation and reversal of ITC for exempted and taxable supplies | Before Closure | |
| 12. RCM Discharge Verification | Confirm RCM liabilities match entries in GSTR-2A | Before Closure | |
| Other Matters | 1. ESI/PF Registration | Apply for ESI/PF registration if employee count exceeded thresholds | ASAP |
| 2. PF & ESI Payment for March | Ensure timely payment of PF & ESI dues by 15th & 21st April respectively | 15.04.2024 & 21.04.2024 | |
| 3. Professional Tax Payment for March | Pay professional tax dues by the prescribed deadline | 30.04.2024 | |
| 4. Compliance with Labor Laws | Ensure compliance with applicable labor laws and regulations | Ongoing | |
| 5. Audit and Compliance Review | Review and prepare for any audits, ensure compliance with financial regulations | Before 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.
