FBIS, The Atlanta Forensic Accounting Specialists Share Why The FYE Process Is Crucial To Business Health
As the year-end approaches, it’s essential for a company to have a clear understanding of the year-end accounting process. For new Atlanta business owners, knowing what the year-end accounting process is, when it takes place, and if a forensic accounting team might be needed if fraud is suspected, is critical to assuring your company ends the year strong and profitable.
What is FYE, and what does it mean?
FYE is an abbreviation for “fiscal year-end.” It is the end of the company’s financial year and the end of its accounting period during which it calculates its taxable income. The fiscal year is usually set between twelve and thirteen months with an allowance for what is called a “fiscal year transition” to align with the consecutive twelve months for future financial reporting.
When does the Year-End Accounting Process take place?
For most companies, the fiscal year-end (FYE) occurs on December 31st. However, depending on their business needs, some companies may have different fiscal years. For example, a retail company may have a fiscal year beginning in February to account for the holiday season profitably.
The year-end accounting process is essential for companies that are required to report financial information to authorities like the IRS and shareholders. Regardless of when the FYE actually occurs, it marks the end of the company’s financial year.
What Takes Place during the Year-End Accounting Process?
The year-end accounting process is a series of procedures that take place to ensure the accuracy of a company’s financial records. Some of the critical steps in this process include:
- Financial Statements Preparation: A company must prepare financial statements during the year-end accounting process. These statements help summarize the company’s financial position throughout the year.
- Internal Control Review: This involves reviewing the internal controls implemented throughout the year for effectiveness. These controls are put in place to prevent any fraud or errors from occurring.
- Balance Sheet Reconciliation: This step involves reconciling the balance sheet and ensuring that the statements provided to financial stakeholders accurately reflect the company’s financial position.
- Income Statement Review: An Income statement presents a company’s revenue and expenses over time. During the year-end accounting process, reviewing and reviewing the income statement is necessary.
- Adjustment Entries: During this process, adjusting entries are made to ensure that the company’s financial records accurately reflect its financial position. These entries can range from correcting errors to recording unrecognized income or expenses.
What should a company do if they find suspected fraud in their year-end accounting?
The year-end accounting process is a crucial aspect of a company’s financial health. It is essential for a company to understand this process and ensure that all necessary steps are taken to complete the year-end accounting process effectively.
If a company finds suspected fraud in its year-end accounting, the first step is to stop all further operations, secure the area, and preserve all evidence. The next step is to contact Forensic Brothers Investigative Services. These cases require special attention and a professional approach.
Forensic Brothers Investigative Services Is Here If You Suspect Fraud
At Forensic Brothers Investigative Services, the forensic accounting specialists, we specialize in forensic accounting and fraud investigations for Atlanta and national business owners. We have the experience to identify financial crimes and handle investigations discovered in the year-end accounting process.
If your company suspects fraud in their year-end accounting, Contact Us Now or Call Us at 678-915-1802.