At RLB, we want to provide our clients with the tools required to assist with preparing for an efficient year end engagement and to ensure that your organization is sufficiently prepared. The additional effort to be more prepared will save time and money, allow you to have more organized records (both at year end and through the year) and ensure your annual deadlines are met.

We have summarized the steps to prepare for your year-end audit or review into 3 sections:

Before the engagement

Before you send us backups of your accounting software or excel versions of your trial balance, financial statements and general ledger, it is a good idea to first check your net asset (retained earnings) balances to ensure they agree to your prior year financial statements. If there is a variance, the steps to reconcile would be as follows:

  1. Compare your prior year trial balance to the closing trial balance provided by RLB
  2. Review the net asset (retained earnings) account(s) to see if any entries were recorded through the year
  3. If there is still a variance, of if you need any assistance, please reach out to your RLB team.

Other items that are helpful to be done before the engagement begins are:

  • Sign and return the engagement letter provided by RLB
  • Make a list of any changes within the organization, whether changes in staff or your financial reporting processes
  • Review the revenue and expense variances to both the prior year and the organization’s budget to ensure all entries are recorded
  • If you have an audit engagement, request the list of test samples required for revenue, expenses, and payroll so that they can be compiled before the audit begins.
  • Other items that are helpful to provide before the year-end audit or review begins are: board of directors listing, board minutes for the year, an approved budget, etc.

During the engagement

Our Not-for-Profit service team has created a template to assist with preparing for your year-end engagement. It includes a list of financial sections and what would be required for each an audit and review engagement, some sections may be not-applicable for your organization.

After the engagement

Once the draft financial statements have been approved by the board of directors, there are still a few items required:

  • Sign and return our representation letter, which includes the adjusting entries and summary of unadjusted differences (if applicable)
  • Signed charity return or corporate tax return and NPO return (if applicable)
  • Adjusting entries provided from the year-end audit or review should be recorded in your accounting software and the year-end balances agreed to the closing trial balance provided from RLB.
    • Please reach out to your RLB team if would like assistance posting your year-end entries. Our Bookkeeping Team can complete this task and reconcile your closing trial balance.