Medical practices: Year-end close preparation

Identify unresolved financial records before relying on the year-end figures. Separate practice collections, owner clinical work, administrative duties and related property arrangements.

Preparation resource. Record completion does not determine eligibility, deductions or tax savings. Ask your qualified tax professional to resolve the facts and applicable rules.

What this file should establish

Reconcile accounts, receivables, liabilities and owner balances to source evidence. Separate routine close tasks from tax adjustments that need a preparer. Track the person responsible and the evidence used to resolve each item.

Separate practice collections, owner clinical work, administrative duties and related property arrangements.

A situation to work through

A practice owner works clinically while also managing employed providers and a separate property company.

For this situation, start with billing-system summaries. Identify the period and legal owner before combining it with the other records. Keep the original source and explain any adjustments in a separate reconciliation.

Review point

Map the service and property entities so payments and responsibilities can be reviewed together.

Unreconciled accounts change profit or owner balances materially.

Question for the reviewer

Which close exceptions must be resolved before a projection or return is finalized?

Expected handoff

A close exception register with a cutoff date.

Separate facts supported by documents from estimates and unresolved assumptions. Assign each missing item to a responsible person and a date. Send the reconciliation alongside the source references so the reviewer can trace each conclusion.

Your preparation worksheet

Enter a reference to the document, the person who can supply it and the unresolved question. Use file names or locations rather than account numbers or other sensitive information. Entries stay in this page until you close or refresh it. They are not sent to us or saved automatically. Export before leaving.

Record or decision	Source reference	Status	Responsible person	Open question
billing-system summaries
provider compensation
equipment purchases
practice ownership
building lease
account
reported balance
support
exception
responsible person

Mark not applicable only after noting why. A collected record can still require correction. Review the exported file before sharing it with your adviser.

Continue this preparation file

Owner compensation evidence

Organize the facts behind owner duties and payments.

Benefit reporting file

Prepare the records behind benefits paid for owners and staff.

Expense reimbursement file

Connect owner-paid spending to supporting business records.

Quarterly projection inputs

Prepare a current operating and household input file.

Entity election readiness

Document the operating facts before evaluating an election.

Retirement plan census

Build an accurate employee and compensation file for a plan discussion.

Intercompany reconciliation

Trace transactions between entities to agreements and counterpart entries.

Capital purchase review

Separate planned and completed purchases from the tax treatment decision.

Contract and obligation review

Organize agreements that affect the operating and cash-flow picture.

Prior-year issue register

Build a year-by-year record of suspected omissions or inconsistent reporting.

Advisor transition handoff

Make the source records and work responsibilities explicit during a transition.

All Medical practices resources

Source and review boundaries

Use the following primary guidance to frame the questions. The worksheet organizes facts; it does not replace analysis of the relevant year, ownership, elections or state treatment. Record the applicable period, confirm the source version and retain the preparer's written conclusions with the supporting documents.

recordkeeping (IRS)

Published 2026-10-09. Prepared by AE Tax Advisors as an educational record-collection resource.