Year-End Close: 10 Steps to a Smooth Fiscal Year-End
Fiscal year-end is quickly approaching, and now is the time to review your accounts, resolve outstanding items, and prepare for a successful close. Taking action early can help avoid last-minute issues, reduce delays, and ensure transactions are recorded accurately.
Use the checklist below to stay on track throughout the year-end process.
1. Review Open Purchase Orders
Open purchase orders should represent valid, active obligations on your grant and departmental accounts.
✓ Review open purchase orders and requisitions for accuracy.
✓ Work with Procurement to close or modify purchase orders that are no longer needed.
✓ Before requesting a PO closure, confirm that all invoices have been submitted and paid. Once a PO is closed, it cannot be reopened.
Helpful Resources
2. Submit and Approve Transactions Promptly
Delays in processing can create bottlenecks during year-end close.
✓ Complete outstanding journal entries, expense transfers, PCard transactions, expense reports, and other financial documents.
✓ Ensure transactions are submitted with enough time for approvals and posting before established deadlines.
✓ If you will be out of the office, assign delegates or proxies in BobcatBUY, Concur, and ICD to prevent transactions from sitting unattended.
Helpful Resource
3. Reconcile Accounts
Account reconciliation helps ensure financial information is complete and accurate.
✓ Review accounts to verify charges are recorded correctly and classified appropriately.
✓ Complete and sign off on trial balance reconciliations by the required deadlines if you are responsible for balance sheet accounts.
4. Review Payroll and Report Departing Employees
Payroll corrections become increasingly difficult as year-end approaches.
✓ Review payroll activity and correct any issues, particularly on grant-funded or term-limited appointments.
✓ Coordinate with Human Resources to confirm end dates for faculty, staff, and student employees to ensure pay ends appropriately.
5. Review Grants and Internal Awards
Year-end is an important time to assess the status of sponsored and internal funding.
✓ Review pending and expired awards for final expense processing and closeout.
✓ Address any overspent awards.
✓ Ensure cost transfers are completed and properly documented.
✓ Ensure Departmental Guarantee Memos (DGMs) have been sent to OSP and are processed and approved by June 30.
✓ Provide award information to OSP as early as possible to meet year-end processing deadlines.
Helpful Resources
- Closeout and Monitoring Requirements for Sponsored and Internal Awards
- Departmental Guarantee Memorandum
6. Complete Inventory and Asset Reviews
Proper asset management supports compliance and accurate financial reporting.
✓ Conduct required physical inventory reviews, particularly for capital equipment.
✓ Update records for disposals, transfers, and acquisitions.
✓ Confirm tagging and documentation requirements have been completed for new assets.
Helpful Resource
7. Communicate with Faculty and Staff
Clear communication helps prevent last-minute surprises.
✓ Remind faculty and staff about key year-end deadlines.
✓ Share guidance regarding final purchases, travel reimbursements, and expense reimbursements.
✓ Be available to answer unit-specific fiscal questions.
8. Prepare for Accruals and Deferred Revenue
Some revenues and expenses may need to be recorded in a different accounting period to ensure accurate financial reporting.
✓ Identify items requiring accrual or deferral.
✓ Submit required accrual documentation according to the year-end schedule.
✓ Identify prepaid expenses and coordinate with General Accounting for proper accounting treatment.
Helpful Resources
- Accrual Process for Accounts Payable Invoices Received After June 30
- Prepaid Expenses: Key Considerations for Year-End Closing
9. Review the Year-End Close Calendar
A successful close starts with understanding the timeline.
✓ Review the official year-end close calendar.
✓ Note all transaction processing, journal submission, and closing deadlines.
✓ Plan staffing and workload coverage to avoid last-minute bottlenecks.
Helpful Resource
10. Create Your Coverage Plan
Summer schedules and planned time away can create challenges during close.
✓ Identify critical deadlines that occur during planned absences.
✓ Arrange backup coverage for approvals and transaction processing.
✓ Ensure delegates are established before leaving the office.
Helpful Resource
Don't Forget the Year-End Close Calendar
As in prior years, an online year-end close calendar is available to help departments track important deadlines and milestones. The calendar is an excellent planning tool and can help you coordinate staffing coverage, schedule work appropriately, and avoid missed deadlines.
Final Thoughts
The most successful year-end closes start well before the final deadlines arrive. Taking proactive steps in May and June helps reduce stress, improve compliance, support accurate financial reporting, and ensure timely transaction processing.
Thank you for your continued diligence and stewardship throughout the year-end process.
Questions?
Contact financecustomercare@ohio.edu