Field Notes ·
Cut-off mistakes we see every December
Common revenue and purchase cut-off errors that delay Taiwan year-end audits — and how to catch them before fieldwork.
December close compresses shipping, invoicing, and vacation schedules. Cut-off errors thrive in that crush.
Revenue recorded before risk transferred
Goods leave the dock on 2 January, yet December invoices already sit in the ledger because sales targets closed on the 31st. Auditors compare shipping documents to invoice dates; mismatches become adjustments.
Purchases parked in the wrong month
Inventory arrives before period end without an accrual when the supplier invoice is late. The warehouse knows the stock is there; the ledger does not. Observation then disagrees with books.
A simple self-check
Pull the last twenty shipments and receipts around period end. Match bill of lading dates to recognition dates. An hour of this work in early January often saves a week of correspondence later.