Meet Jason Wade
CPA at Condon Hecht Bisher Wade & Company, P.C.
As foundations prepare to close out 2025, we asked our trusted CPA consultant, Jason Wade, for his input on year-end processing and audit preparation.
Foundation staff often say that closing the books in December feels like just another month. And while that December close should look and feel like any other month, there’s another piece that deserves its own focus: the year-end close for audit preparation.
Even when your monthly closes are timely, there are additional items that almost always show up at year-end. Because of that, I recommend keeping a separate year-end checklist in addition to your regular monthly close list—and approaching year-end as two distinct closes.
"Separating the operational close from audit preparation creates clarity, reduces pressure, and leads to a smoother, more confident, and cleaner year-end process."
Think in Terms of Two Closes, Two Purposes
December Close – Just like every other month. Reconcile, post entries, and get the month closed so teams can move forward without disruption.
Year-End Close – Focused on audit readiness. This one isn’t about internal decision-making; it’s about making sure the auditors have the support they need.
Why separate them? If your team is used to closing monthly by the 15th (or even month-end of the following month), adding in all of the year-end work on that same timeline can be unrealistic. Many year-end adjustments impact consolidated financials more than internal metrics, so it’s reasonable to treat this as a separate step.
Start by Tying Out the Balance Sheet
A good year-end close starts with tying out the balance sheet. Take your consolidated balance sheet and make sure every line has documentation you can point to. That might be:
A bank reconciliation and statements for cash and investments
A depreciation schedule for buildings, equipment, and other fixed assets
Supporting documentation for noncash assets like CRTs, annuities, closely held stock, or digital currencies
A detailed listing of transactions for receivables and payables
As long as each number on the balance sheet has support that explains what makes it up, you’re in good shape.
Review Activities
Once the balance sheet is tied out, step back and review revenues and expenditures for reasonableness. Categories like gifts, grants, and investment income should have schedules that help explain what’s been recorded.
Plan for Common Year-End Adjustments
Some adjustments tend to happen only at year-end, including:
Agency adjustments
Valuations for CRTs, non-marketable securities, and closely held stock
Accrued payroll
Other annual accruals
Some organizations handle these throughout the year; others adjust them at year-end. In some cases, auditors help prepare the entries. Either way, make sure they are addressed in your year-end close.
Final Thoughts
Treating the year-end close as its own process—separate from your monthly close—takes pressure off month-end deadlines and leads to a cleaner, smoother audit experience.
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