Year-end close checklist with a records review note for CPA firms

What records note should go on a year-end close checklist?

Add a metadata-only records review to the close: list which systems held business records this year and which are scheduled to be cancelled, migrated or retired, without opening, copying or describing anything in them. The note takes minutes, gives the client a chance to export before a subscription lapses, and sets up a conversation about whether long-running records have value.

Before you add anything that could lead to a referral, read your own profession's rules. For CPAs, that means the AICPA Code first, which is covered below.

Year-end close checklist with a records review

Cut-off and reconciliations

• Bank, credit card and loan accounts reconciled through the period end
• AR and AP subledgers tied to the general ledger
• Inventory counts and valuation reviewed, where relevant
• Accruals, prepaid and deferred revenue schedules updated

Adjustments and review

• Depreciation and amortization posted
• Payroll liabilities, bonuses and PTO accrual checked
• Intercompany balances eliminated
• Tax provision and estimated payments reviewed with the tax team
• Management review and sign-off documented

Documentation and workpapers

• Close binder or workpaper index complete
• Support for unusual entries filed
• Open items carried to next month's list

Records review note (metadata only)

• List of systems used this year: accounting, payroll, expense, billing, CRM, help desk, document storage
• Which systems carry five or more years of history, by name only
• Which subscriptions renew, lapse or are being replaced in the next six months
• Whether anyone owns an export plan before a system is cancelled
• Note in the file: "Records review raised with {client contact} on {date}", nothing more

First: check your referral and commission rules

Many close-checklist readers are CPAs. Under the AICPA Code of Professional Conduct, the Commissions and Referral Fees rule (ET 1.520) bars a member in public practice from accepting a commission for recommending a product or service to a client when the member or firm also performs an audit, review or certain compilations or examinations for that client, and permitted commissions and referral fees must be disclosed to the client. State boards can be stricter, so confirm with yours.

The practical consequence is that your engagement type for each client drives the answer. A firm that only prepares taxes or provides client accounting services for a client faces a different question than one that audits it.

This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.

Where does this fit in the close calendar?

Companies winding down or merging have a sharper version of this problem. The wind-down records guide and shutting down a business unit cover those cases, and the file server decommission checklist handles legacy storage.

What happens if the client wants to explore licensing?

Once your own rules are cleared and the client's authorized sponsor, such as the owner, CEO or CFO, asks, the sequence is short.

1. The client applies at sourcex.si/apply, or you make an introduction with their consent.
2. SourceX qualifies the company: 50+ full-time employees at peak (contractors excluded), several years of documented operations and rights to license.
3. The company completes a data inventory.
4. Price and terms are agreed, buyers review, and nothing is binding until signed.
5. If a deal closes, data is delivered after an executed agreement and the company is paid.

You never export, upload or describe confidential records; the close file stays a close file. The month-end close workpapers introduction checklist covers that angle from the workpaper side.

Rewards

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company. The reward is paid only after the buyer pays and SourceX receives its fee; a lead, meeting or signed agreement alone does not trigger payment, and no reward is guaranteed. The reward is a share of SourceX's fee and is never deducted from what the company receives. Whether you may accept one is a question for the rules above, not for this page. See the accountant referral page and the program terms.

Next step

Add the records review note to your next close. If your firm's rules permit referrals and the client agrees, register as a partner and introduce them; the introduction email builder can draft the message.