Year-end Closing Checklist for SMEs (Overview)

As the fiscal year winds down, closing the books is more than just a formality, it’s your chance to ensure accuracy, compliance, and a clean slate for next year. 

For Malaysian SMEs accepting online payments, incorporating payment‑gateway data ensures your financial statements truly reflect your business’s performance. Below is a step‑by‑step guide tailored for you covering essential accounting tasks and how to weave in payment gateway considerations.

1. Plan Your Close Schedule

Start by setting a timeline: allocate deadlines, assign owners, and create a task tracker. Preparing ahead saves you from last‑minute chaos.

Check‑in for payment gateways:

• Make sure all transactions processed through your gateway (such as., via cards, e‑wallets, FPX) are recorded up to the chosen cut‑off date.
• Flag any unsettled batches or pending payouts.

Read more: Top 10 Payment Gateways in Malaysia (Review)

2. Gather All Relevant Documents

Collect everything you’ll need: bank statements, merchant statements, credit‑card statements, loan schedules, payroll records, inventory counts, and yes payment‑gateway reports.

Payment gateway tasks:

• Download your gateway’s monthly statement showing gross payments, refunds, chargebacks, settlement fees.
• Verify the settlement schedules (T+0, T+1, and so on.) match what was settled.
• Ensure currency conversion (if any) is documented and clear.

3. Reconcile Receivables & Payables

Review what you’re owed (accounts receivable) and what you owe (accounts payable). Ensure nothing is lingering unrecorded. 

With payment gateway data:

• Match payments recorded in the gateway to your sales ledger. Any missing transactions?
• Review refunds or chargebacks logged by the gateway, these reduce revenue and should be accounted for.
• Make sure fees are charged by the gateway (commission, settlement, and more.) are properly recorded as expenses.

4. Reconcile Bank and Settlement Accounts

Compare your accounting ledger to your bank statements and payment‑gateway settlement listings. Discrepancies? Track them down now.

Key attention points:

• Settlement timing: sometimes gateway batches settle after month end, which affects cut‑off.
• Currency and conversion: if your gateway handles multi‑currency payments, confirm the amounts in your local currency.
• Withheld fees: ensure the net settled figure matches what you recorded.

5. Review Assets, Liabilities & Depreciation

Check fixed assets, inventory, and liabilities. Update depreciation schedules, assess any impairments.

Plus payment gateway side‑note:

• If you purchased a new terminal, POS device, or integrated new payment tech this year, ensure you capitalise and depreciate accordingly.
• If you owe gateway-related liabilities (such as deferred settlements), reflect those.

6. Prepare Financial Statements

Now build your income statement, balance sheet, and cash‑flow statement. Use accurate data so stakeholders (or your tax authority) get the right picture. 

Payment gateway impact:

• Revenue should reflect gross receipts less refunds/chargebacks and minus recognised fees.
• Cash‑flow should show gateway settlements as cash inflows (and fees as outflows).
• For recurring subscriptions via gateway: check if deferred revenue or other accruals are needed.

7. Check Tax, Compliance & Archive Records

Ensure you’re tax‑ready: tax filings, audit documentation, regulatory disclosure where needed. Store records securely for future audits. 

Gateway data note:

• Retain monthly gateway statements, refund logs and settlement summaries, these support your sales and revenue figures if audited.
• Confirm your gateway is compliant (like PCI‑DSS) and show proof as part of internal controls.

Related reading: AI, Automation & Tax Technology in Malaysia

8. Reflect & Plan Forward

Review this year’s performance, set forecasts, and refine controls. Use what you learned to improve next year’s close process. 

Payment gateway considerations going into next year:

• Evaluate if your gateway’s settlement speed, currency support or fee structure still fits your business.
• If you plan to expand regionally, check “multi‑currency pricing & settlement” options in your gateway API.
• Update your checklist and integrate payment‑gateway tasks into your regular monthly/quarterly close.

Conclusion

A clean year-end close sets the tone for smarter decisions next year. When your numbers, payments, and online settlements are reconciled, you’re not just meeting compliance, you’re giving your business room to grow with clarity and focus.

Now’s the time to sort your accounting checklist, fine-tune payment tracking, and review gateway reports before the year wraps.

If you’re also thinking about boosting your brand visibility heading into the new year, Press can help. We’re a digital PR agency that helps businesses get featured, talked about, and discovered online.

Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or accounting advice. Please consult a certified professional for specific guidance based on your business needs.