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Speaker A and Speaker B (Lottie) discussed the January month-end close process and upcoming year-end compilation review. They reviewed outstanding queries across multiple entities (HCR, Avon, Versatile), addressing specific issues including equipment repair payments, vehicle leasing income, and sales tax. The team clarified that Versa will be reimbursed for the $14,500 barn door repair, which should be capitalized and depreciated over 36 months. They also discussed the compilation review requirements, which appear significantly smaller than last year's review and should be completed by April.
The conversation covered several outstanding balance sheet items requiring attention, including debt and asset values for two-family and NC&T properties, ASC 842 lease accounting adjustments, and fixed assets/vehicles. Speaker B committed to sending Versatile and HCR close by tomorrow, with Avon to follow by Thursday. They identified a $40,000 discrepancy in Avon's payroll numbers, which they believe relates to employee tax withholdings that may not be direct company expenses.
Both speakers expressed satisfaction with their progress, noting they are closer to completion than expected. The compilation review timeline was set for a 2-3 week process rather than the 6-8 weeks required last year. Several payroll liability reconciliation issues were discussed, with plans to accrue a 2024 payroll tax adjustment to December 31, 2025, and defer resolution of some small payroll liabilities until Jenny returns.
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| Decisions |
| Pay Versa for the $14,500 barn door equipment repair (Versa will be reimbursed, not Blanca directly), capitalize the cost, and depreciate over 36 months — Speaker A |
| No leasing income should be recorded for January as there is no interest accrued and no payments being made — Speaker A |
| Accrue the 2024 Q4 payroll tax reconciliation charge to December 31, 2025 (as a 12/31/25 entry) — Speaker A |
| Complete the compilation review by April with a 2-3 week process timeline rather than rushing — Speaker A |
| In future payroll estimates, create two calculations (with and without certain employee tax withholdings) to establish a range — Both speakers (collaborative) |
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| Topics |
| January month-end close status for multiple entities (HCR, Avon, Versatile)
Year-end compilation review requirements and timeline
Blanca del Trinidad equipment repair payment and capitalization ($14,500)
Outstanding balance sheet items (debt, assets, ASC 842 lease accounting)
Payroll tax discrepancies and reconciliation issues (~$40,000 variance)
Revenue accrual and deferral processes
Invoice approval workflow in RentalWorks
Timeline for deliverables (Thursday for Avon, next week for compilation review)
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