# January Month-End Close Review and Year-End Compilation Discussion

**February 17, 2026 at 02:01 PM** · 18m 54s · Participants: JD, Lottie

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.

### Action Items
- [ ] Complete month-end close for Versatile and HCR entities including revenue accrual/deferral and overhead reclass — @LOTTIE `high`
- [ ] Complete Avon month-end close including AR deferral accrual for Bruce's house — @LOTTIE `high` (due 2025-01-30)
- [ ] Send ASC 842 lease accounting adjustments to RKE for review and verification — @LOTTIE `high`
- [ ] Review compilation requirements and begin preparation work for year-end compilation (target completion by April) — @LOTTIE `medium`
- [x] Complete balance sheet items including debt and asset values for two-family and NC&T properties, and fixed assets/vehicles review

### 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)

**Sentiment:** positive

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*Generated by Call Assistant on 2026-04-09 13:18*