Your 12-Step Year-End Close Checklist for an Advisory Firm That Leaves No Loose Ends

The close of the year is your opportunity to finish strong, not frantic. A disciplined operational checklist ensures accuracy, compliance, and clarity so your firm can enter the new year focused on growth rather than catch-up. Use this structured guide to tie up loose ends across finance, compliance, technology, and client service.

1. Reconcile all accounts and custodial balances
Begin with financial hygiene. Verify that every account (operating, payroll, trust, and custodial) is fully reconciled against your general ledger and custodian statements. Ensure all transactions are matched and discrepancies documented. This creates a clean baseline for audits, tax filings, and financial projections.

2. Collect outstanding receivables
Aged receivables distort cash flow and understate profitability. Run an aging report, follow up on open invoices, and confirm that client billing for AUM and flat-fee arrangements is current. Send professional reminders and resolve disputes early. Every dollar collected before year-end strengthens your liquidity position.

3. Verify client-data accuracy
Cross-check your CRM, custodial databases, and compliance systems for current client information: contact details, beneficiary data, tax IDs, and account titles. Data errors lead to operational inefficiencies, compliance flags, and communication mishaps. Update records now to ensure smooth service delivery in Q1.

4. Confirm fee calculations and billing completeness
Recalculate advisory fees for the last quarter to confirm accuracy in your billing software or custodian platform. Pay special attention to tiered AUM structures or clients with mid-quarter deposits and withdrawals. Even small miscalculations can compound into costly errors or compliance issues.

5. Update your compliance calendar
Review your compliance deadlines: including ADV updates, Form CRS, policy attestations, continuing-education requirements, and vendor due-diligence renewals. Document completed tasks and schedule upcoming ones. Keeping your compliance calendar current ensures your firm stays regulator-ready without scrambling in Q1.

6. Review vendor renewals and contract changes
List every vendor and software subscription. Note renewal dates, rate changes, and service-level agreements. Evaluate ROI on each vendor: are they still meeting your operational needs? Negotiate renewals or cancel underused tools before auto-renew clauses lock in higher fees.

7. Back up all key documents securely
Perform a full backup of digital records: client files, HR documents, compliance logs, and financial reports. Store encrypted copies in multiple secure locations (e.g., cloud + physical drive). Verify that retention policies meet regulatory requirements for your firm type (RIA or broker-dealer affiliate).

8. Run cybersecurity updates and password resets
Cyber risks spike during transitions. Update firewalls, antivirus software, and VPN configurations. Require password resets for all employees and confirm multi-factor authentication is active across systems. Review access permissions for former staff or vendors and revoke any unnecessary credentials.

9. Review staff PTO balances and HR files
Check that all paid-time-off and carryover policies comply with state and firm guidelines. Reconcile balances and finalize year-end payroll adjustments. Use this review to ensure HR files are complete: with licenses renewed, certifications current, and performance reviews logged.

10. Audit your marketing content for compliance
Review website pages, social posts, newsletters, and blog content to confirm disclosures and performance claims align with regulatory standards. Archive old materials and record approvals. This ensures your marketing remains compliant while preserving the firm’s brand integrity.

11. Conduct client-satisfaction outreach
Send an end-of-year thank-you message or short survey to gather client feedback. Ask about service satisfaction, communication clarity, and improvement areas. Clients appreciate being heard, and their responses can shape operational goals and training priorities for the year ahead.

12. Draft your Q1 operational priorities
Use insights from this checklist to define Q1 objectives: automation upgrades, new hires, workflow refinements, or marketing initiatives. Document them in your project tracker and assign ownership. A clear first-quarter plan keeps your team aligned and proactive.

Conclusion
A thorough year-end close does more than clean your books—it builds organizational confidence. By addressing financial, operational, and client-service touchpoints now, your firm enters the new year organized, audit-ready, and positioned for strategic growth.

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