Year-End Close & Tax Handoff

Purpose & Systems of Record

QBOAsanaDouble / Accounting HubGoogle DriveSoraban

Workflow tracking: Asana — Client portal: Double (portal-first for all client questions) — Workpapers: Google Drive (standard locations) — TB workbook: Year-end drive folder → TAX Workpapers

Client Communication Standard: All client questions, document requests, and open items should be submitted via the Double portal / Accounting Hub whenever possible. Use email only when the portal is unavailable, the client cannot access it in time, or the request is time-sensitive.

Asana Status Flow

Not Started — not begun
Pending Client Close — missing required client docs/inputs (portal request must exist)
Books Review — reviewing in QBO and confirming balances
Cleanup Pending — fixing issues found
Waiting For Info — question asked, blocked until received (portal request must exist)
Under Review — YE Reviewer (Tax Supervisor) reviewing
Submitted for Prep — YE close complete and approved; tax prep can start immediately

A — Pre-Close (YE Preparer)

A1. Setup and Notes

Confirm Client Note tab for the current tax year Year End Review exists. Tag/link the current year-end drive folder in that tab. Add a quick start note with the date.

A2. Determine Bookkeeping Scope

Before asking the client for anything, determine whether this is a regular bookkeeping client or a non-bookkeeping/limited-scope client. If non-bookkeeping, complete the Billable Cleanup Assessment before sending portal requests.

A3. Opening Balance / Equity Tie-Out

Confirm opening equity/capital position is consistent with prior year close/return logic. If off, document in Year End Review notes and move to Cleanup Pending.

A4. Tax Liabilities Pre-Check (Major Risk Area)

Income Tax Payable/Tax Due accounts should not be a junk drawer. Review account detail and reclassify: payroll taxes → Payroll liabilities, sales tax → Sales tax payable, owner personal tax estimates paid from business → Distributions/Draws. PY tax due should be $0 if paid. If not $0 and reason is unknown, submit a portal request and move to Waiting For Info.

B — Books Review (YE Preparer)

B1. QBO Prep for Taxes (Live Checklist)

Complete Prep for Taxes review as normal. Notes remain in Client Note Year End Review — not in QBO. Prefer correcting underlying transactions over YE journal entries — YE journal entries should be rare and fully supported.

B2. Update TB Workbook

Update the TB workbook with final book balances. Do not enter AJEs/M-1 tabs (tax preparer only). Naming convention: {CLIENTCODE} - 202X Books to Tax Write-Up - {return type}.

B3. Workpaper Linking (The Completeness Control)

For each material balance sheet account, add a Drive short link to the supporting workpaper in the WP column. If you cannot support a balance, submit a portal request in Double, move to Waiting For Info, and paste the portal link in Year End Review notes.

B4. Payroll Minimum Package

Request via portal if no internal payroll access. Required: gross wages + employer taxes summary, officer vs. non-officer detail, benefits/deductions summary, W-2s, liability tie-out reports. Link payroll support in TB workbook.

B5. Update Year End Review Notes

In the Year End Review tab, include: tax liabilities outcome (cleared vs. escalated), key exceptions/unusual items, open items list with owners and portal links.

C — Submit for Review (Preparer → Reviewer)

C1. Final Self-Check (Preparer)

Before moving to Under Review, confirm:
TB workbook updated (final balances only) · WP links complete (or open items logged) · Year End Review notes complete with portal links · Books locked if applicable

C2. Move to Under Review

Set status to Under Review. Leave a comment noting readiness and any exceptions.

YE Reviewer Sign-Off (Tax Supervisor — Seat 4)

Reviewer Checklist:
Reasonableness scan of TB (big swings vs. PY) · Spot-check WP links for major balances (cash, AR/AP, payroll liabilities, loans, equity, tax liabilities) · Confirm tax liabilities rules followed · Confirm Year End Review notes are complete and usable for tax

If revisions needed: Status → Cleanup Pending with required fixes noted by account/topic.

If approved: Complete sign-off. YE Preparer updates status to Submitted for Prep.

Asana Update Rules — Tax Prep Handoff

If "Not Checked In": Move Tax Prep task to YE Close section, assign to YE Preparer, set status to "Ready for Prep"
If "Checked In – Pending YE Close": Assign to Tax Intake owner, set status to "Ready for Prep"
If "Intake in Process": No action needed — leave status and assignee unchanged. The dependency completion signals to the tax team that the return can move to Ready for Prep when intake is complete.

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