Revenue cut-off mistakes we still see at year-end

For exporters and domestic distributors alike, the last week of December (or your fiscal year-end) is where revenue recognition and shipping reality diverge.

Bills of lading versus invoice dates

If goods leave the dock on 2 January but the invoice is dated 30 December, your cut-off story needs a policy — and evidence. Pull a sample of late-December invoices and match them to carrier documents before the auditors request the same sample.

Returns after the balance sheet date

January returns that relate to December shipments may need consideration depending on your terms. Keep a simple log of post-period credit notes with the original invoice reference.

Channel partners and bill-and-hold

Arrangements where inventory stays in your warehouse after “sale” attract extra scrutiny. Document who holds title, who insures the goods, and why delivery was delayed. Absent that file, expect extended inquiries.