For many nonprofit organizations, June 30th marked the end of the fiscal year - now's the time for some much-needed reflection and reconciliation. In this blog, we go over the most important actions you need to carry out whenever a fiscal year ends. Having a thorough fiscal year-end checklist is a standard best practice that's crucial for nonprofits to maintain financial health, compliance, and transparency. 

• Review and Reconcile Your Financials: It's time to reconcile your bank accounts and discrepancies from the year, and verify that all receivables and payables have been recorded and collected/ paid. Any remaining petty cash should be reconciled as well. Lastly, don't forget to conduct a physical count of inventory and make sure all is accounted for. Your financial statements should have clear and accurate records of the year's balance sheets, activities, cash flows, and expenses. 
• Prep Your Tax Statements: It might not be the most exhilarating activity, but having a comprehensive compliance and reporting system will save you a lot of time in the long run! Prepare state and local tax filings accordingly, and complete and submit any required year-end grant reports. Most importantly, make sure to gather all necessary documentation and records to prepare for that inevitable audit that most nonprofits are familiar with. 
• Look Back and Look Ahead: How did you do budget-wise? Once you're done comparing actual results and explaining variances, it's time to prepare a detailed budget for the new fiscal year. 
• Get In Touch with Your Board: Scheduling your end-of-year board meetings, and prepare financial and impact reports for your board. Learn all about impact measurement here. 
• Mind Your Administrative Tasks: Give attention to the tasks that are easily-overlooked - review contracts and agreements, conduct an organizational performance review, and make sure your financial procedures are up-to-date.
• Don't Forget Your Donors: If you have any acknowledgement letters still waiting to be sent, now's the time to do so. More importantly, you need to evaluate the success of your fundraising and plan for next year. 

By following a comprehensive checklist at the end of each fiscal year, nonprofits can maintain integrity and compliance, effectively evaluate their successes, and build a strong foundation for future growth and support. 

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