Streamline Your Financial Year-End: Essential Checklist to Close Books Correctly in 2024

As we approach the end of the Financial Year 2023-24, it’s imperative for businesses to ensure that their books are in order and all necessary steps are taken before closing. Dexter Consultancy, your trusted tax consulting partner, presents the essential checkpoints to guarantee a smooth year-end closing process.

Financial Year-end Closing Checklist

Deduct TDS on Year-end Provisions:
Ensure proper TDS deduction on year-end provisions such as Audit Fees, Annual Filing Charges, etc. It’s crucial to verify that TDS is deducted and paid accurately in these cases.
Verification of Closing Stocks as on 31.03.2024:
Document quantity-wise and item-wise values of closing stocks as of 31.03.2024, especially for tax audit and book closing purposes.
Collecting Loan & FD Statements:
Accountants should gather statements for all running loans and Fixed Deposits and accurately record actual/accrued interests.
Collecting Bank Statements:
Maintain/download bank statements and ensure proper Bank Reconciliation Statements (BRS) as applicable.
Balance Confirmations of All Running Parties:
Collect balance confirmations and ledgers of all sundry creditors & debtors, reconciling them with 26AS where necessary.
Double Check Expenses for TDS Deduction:
Reconfirm TDS applicability on expenses where TDS hasn’t been deducted and check for Equalisation Levy applicability.
TDS on Advance Payments:
Verify if TDS has been paid on Advance Payments made to suppliers, especially for balances appearing in the books as of 31.03.2024.
Reconcile Inter-branch Balances:
Ensure reconciliation of inter-branch balances and balances of subsidiary companies for smooth year-end book closure.
Record Foreign Exchange Fluctuations Properly:
Ascertain Foreign Currency Values for outstanding balances involving Foreign Parties or Assets/Investments as of 31.03.2024 and record fluctuation differences as per AS-11.
Recording Depreciation on Fixed Assets:
Record proper depreciation as per Schedule II of Companies Act, 2013 on Fixed Assets appearing in the books.
Loan to Directors or Interested Parties:
Ensure compliance with the Companies Act, 2013 regarding loans to directors or interested parties, subject to exceptions.
Actuarial Valuation for Gratuity and Leave Encashment Payable:
If suggested by auditors, conduct Actuarial Valuation for Gratuity and Leave Encashment liability as per Indian Accounting Standards.
Transfer Pricing Alignment:
Ensure alignment of books with agreements executed between Holding companies, Subsidiary Companies, or Associated Enterprises.
Taking Proofs from Employees Against Investment Declarations:
Collect proofs for employee investments as declared and deduct balance TDS accordingly during salary payments for March.

GST Related Checklist Points

Download all GSTR-2A/2Bs:
Download GSTR-2A and GSTR-2B related to FY 2023-24 and record GST Inputs if not recorded, excluding ineligible ITC.
Reverse GST Inputs if Payment Pending:
Reverse GST Inputs and pay corresponding tax liabilities along with interest if payment is pending for more than 180 days.
Double Check Income for GST Compliance:
Reconfirm GST payments or rates applied, especially for exempt export supplies, and ensure proper LUT is in place
Match GST Ledger Balances:
Reconcile GST ledger balances as on 31.03.2024 with balances in the books (Electronic Cash Ledger, Electronic Credit Ledger & Electronic Liability Ledger)